# Official Journal L 59/1 Ma

| | ISSN 1725-2555 |
| --- | --- |
| Official Journal
  of the European Union | L 59 |
| | |
| English edition | Legislation | Volume 491 March 2006 |

ISSN 1725-2555

Official Journal

of the European Union

L 59

English edition

Legislation

Volume 491 March 2006

---

| Contents | | I   Acts whose publication is obligatory | page |
| --- | --- | --- | --- |
| | * | Council Regulation (EC, Euratom) No 351/2006 of 27 February 2006 laying down the weightings applicable from 1 July 2005 to the remuneration of officials, temporary staff and contract staff of the European Communities serving in third countries and of certain officials remaining in post in the ten new Member States for a maximum period of fifteen months after accession | 1 |
| | * | Council Regulation (EC) No 352/2006 of 27 February 2006 repealing Regulation (EEC) No 1461/93 concerning access to public contracts for tenderers from the United States of America | 7 |
| | | Commission Regulation (EC) No 353/2006 of 28 February 2006 establishing the standard import values for determining the entry price of certain fruit and vegetables | 8 |
| | * | Commission Regulation (EC) No 354/2006 of 28 February 2006 amending Regulation (EC) No 639/2003 laying down detailed rules pursuant to Council Regulation (EC) No 1254/1999 as regards requirements for the granting of export refunds related to the welfare of live bovine animals during transport | 10 |
| | * | Commission Regulation (EC) No 355/2006 of 28 February 2006 imposing a provisional anti-dumping duty on imports of certain side-by-side refrigerators originating in the Republic of Korea | 12 |
| | | Commission Regulation (EC) No 356/2006 of 28 February 2006 fixing the production refund on white sugar used in the chemical industry for the period from 1 to 31 March 2006 | 34 |
| | * | Commission Regulation (EC) No 357/2006 of 28 February 2006 amending for the 64th time Council Regulation (EC) No 881/2002 imposing certain specific restrictive measures directed against certain persons and entities associated with Usama bin Laden, the Al-Qaida network and the Taliban, and repealing Council Regulation (EC) No 467/2001 | 35 |
| | | Commission Regulation (EC) No 358/2006 of 28 February 2006 fixing the import duties in the cereals sector applicable from 1 March 2006 | 37 |
| | | Commission Regulation (EC) No 359/2006 of 28 February 2006 amending the representative prices and additional duties for the import of certain products in the sugar sector fixed by Regulation (EC) No 1011/2005 for the 2005/2006 marketing year | 40 |
| | | Commission Regulation (EC) No 360/2006 of 28 February 2006 determining the world market price for unginned cotton | 42 |

Contents

I   Acts whose publication is obligatory

page

*

Council Regulation (EC, Euratom) No 351/2006 of 27 February 2006 laying down the weightings applicable from 1 July 2005 to the remuneration of officials, temporary staff and contract staff of the European Communities serving in third countries and of certain officials remaining in post in the ten new Member States for a maximum period of fifteen months after accession

1

*

Council Regulation (EC) No 352/2006 of 27 February 2006 repealing Regulation (EEC) No 1461/93 concerning access to public contracts for tenderers from the United States of America

7

Commission Regulation (EC) No 353/2006 of 28 February 2006 establishing the standard import values for determining the entry price of certain fruit and vegetables

8

*

Commission Regulation (EC) No 354/2006 of 28 February 2006 amending Regulation (EC) No 639/2003 laying down detailed rules pursuant to Council Regulation (EC) No 1254/1999 as regards requirements for the granting of export refunds related to the welfare of live bovine animals during transport

10

*

Commission Regulation (EC) No 355/2006 of 28 February 2006 imposing a provisional anti-dumping duty on imports of certain side-by-side refrigerators originating in the Republic of Korea

12

Commission Regulation (EC) No 356/2006 of 28 February 2006 fixing the production refund on white sugar used in the chemical industry for the period from 1 to 31 March 2006

34

*

Commission Regulation (EC) No 357/2006 of 28 February 2006 amending for the 64th time Council Regulation (EC) No 881/2002 imposing certain specific restrictive measures directed against certain persons and entities associated with Usama bin Laden, the Al-Qaida network and the Taliban, and repealing Council Regulation (EC) No 467/2001

35

Commission Regulation (EC) No 358/2006 of 28 February 2006 fixing the import duties in the cereals sector applicable from 1 March 2006

37

Commission Regulation (EC) No 359/2006 of 28 February 2006 amending the representative prices and additional duties for the import of certain products in the sugar sector fixed by Regulation (EC) No 1011/2005 for the 2005/2006 marketing year

40

Commission Regulation (EC) No 360/2006 of 28 February 2006 determining the world market price for unginned cotton

42

| EN | Acts whose titles are printed in light type are those relating to day-to-day management of agricultural matters, and are generally valid for a limited period.
  The titles of all other Acts are printed in bold type and preceded by an asterisk. |
| --- | --- |

EN

Acts whose titles are printed in light type are those relating to day-to-day management of agricultural matters, and are generally valid for a limited period.

The titles of all other Acts are printed in bold type and preceded by an asterisk.

---

I Acts whose publication is obligatory

| 1.3.2006 | EN | Official Journal of the European Union | L 59/1 |
| --- | --- | --- | --- |

1.3.2006

EN

Official Journal of the European Union

L 59/1

---

COUNCIL REGULATION (EC, EURATOM) No 351/2006

of 27 February 2006

laying down the weightings applicable from 1 July 2005 to the remuneration of officials, temporary staff and contract staff of the European Communities serving in third countries and of certain officials remaining in post in the ten new Member States for a maximum period of fifteen months after accession

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community,

Having regard to the Staff Regulations of officials of the European Communities and the conditions of employment of other servants of the Communities laid down by Regulation (EEC, Euratom, ECSC) No 259/68 (1), and in particular the first paragraph of Article 13 of Annex X thereto,

Having regard to the 2003 Treaty of Accession, and in particular Article 33(4) thereof,

Having regard to the proposal from the Commission,

Whereas:

| (1) | It is necessary to take account of changes in the cost of living in countries outside the Community, and to determine accordingly the weightings applicable from 1 July 2005 to remuneration payable in the currency of the country of employment to officials, temporary staff and contract staff of the European Communities serving in third countries and to certain officials remaining in post in the ten new Member States for a maximum period of fifteen months starting on 1 May 2004. |
| --- | --- |

(1)

It is necessary to take account of changes in the cost of living in countries outside the Community, and to determine accordingly the weightings applicable from 1 July 2005 to remuneration payable in the currency of the country of employment to officials, temporary staff and contract staff of the European Communities serving in third countries and to certain officials remaining in post in the ten new Member States for a maximum period of fifteen months starting on 1 May 2004.

| (2) | The weightings in respect of which payment has been made on the basis of Regulation (EC, Euratom) No 257/2005 (2) may lead to retrospective upward or downward adjustments to remuneration. |
| --- | --- |

(2)

The weightings in respect of which payment has been made on the basis of Regulation (EC, Euratom) No 257/2005 (2) may lead to retrospective upward or downward adjustments to remuneration.

| (3) | Provision should be made for back-payments in the event of an increase in remuneration as a result of the new weightings. |
| --- | --- |

(3)

Provision should be made for back-payments in the event of an increase in remuneration as a result of the new weightings.

| (4) | Provision should be made for the recovery of sums overpaid in the event of a reduction in remuneration as a result of the new weightings for the period between 1 July 2005 and the date of entry into force of this Regulation. |
| --- | --- |

(4)

Provision should be made for the recovery of sums overpaid in the event of a reduction in remuneration as a result of the new weightings for the period between 1 July 2005 and the date of entry into force of this Regulation.

| (5) | Provision should be made for any such recovery to be restricted to a period of no more than six months preceding the date of entry into force of this Regulation and for its effects to be spread over a period of no more than twelve months following that date, as is the case with the weightings applicable within the Community to remuneration and pensions of officials and other servants of the European Communities, |
| --- | --- |

(5)

Provision should be made for any such recovery to be restricted to a period of no more than six months preceding the date of entry into force of this Regulation and for its effects to be spread over a period of no more than twelve months following that date, as is the case with the weightings applicable within the Community to remuneration and pensions of officials and other servants of the European Communities,

HAS ADOPTED THIS REGULATION:

Article 1

With effect from 1 July 2005, the weightings applied to the remuneration of officials, temporary staff and contract staff of the European Communities serving in third countries and to certain officials remaining in post in the ten new Member States for a maximum period of fifteen months starting on 1 May 2004, payable in the currency of the country of employment, shall be as shown in the Annex.

The exchange rates used for the calculation of this remuneration shall be established in accordance with the rules for the implementation of the Financial Regulation and shall correspond to the date referred to in the preceding paragraph.

Article 2

1.   The institutions shall make back-payments in the event of an increase in remuneration as a result of the weightings shown in the Annex.

2.   The institutions shall make retrospective downward adjustments to remuneration in the event of a reduction as a result of the weightings shown in the Annex for the period between 1 July 2005 and the date of entry into force of this Regulation.

Retrospective adjustments involving the recovery of sums overpaid shall be restricted to a period of no more than six months preceding the date of entry into force of this Regulation. Recovery shall be spread over no more than twelve months from that date.

Article 3

This Regulation shall enter into force on the day of its publication in the Official Journal of the European Union.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, 27 February 2006.

For the Council

The President

U. PLASSNIK

---

(1)  
  OJ L 56, 4.3.1968, p. 1. Regulation as last amended by Regulation (EC, Euratom) No 31/2005 (OJ L 8, 12.1.2005, p. 1).

1

(2)  
  OJ L 46, 17.2.2005, p. 1.

2

---

ANNEX

| Place of Employment | Weightings July 2005 |
| --- | --- |
| Afghanistan (*1) | 0 |
| Albania | 86,2 |
| Algeria | 89,3 |
| Angola | 126,5 |
| Argentina | 63,3 |
| Armenia | 104,9 |
| Australia | 105,3 |
| Bangladesh | 53,3 |
| Barbados | 127,4 |
| Benin | 92,8 |
| Bolivia | 52,2 |
| Bosnia and Herzegovina | 73,4 |
| Botswana | 62,8 |
| Brazil | 76,8 |
| Bulgaria | 73,9 |
| Burkina Faso | 87,7 |
| Burundi (*1) | 0 |
| Cambodia | 67,6 |
| Cameroon | 101,3 |
| Canada | 84,6 |
| Cape Verde | 74,2 |
| Central African Republic | 117,6 |
| Chad | 130,6 |
| Chile | 79,4 |
| China | 78,5 |
| Colombia | 71,3 |
| Congo | 129,8 |
| Costa Rica | 72,4 |
| Côte d’Ivoire | 111,2 |
| Croatia | 101,8 |
| Cuba | 93 |
| Cyprus | 101,3 |
| Czech Republic | 82,1 |
| Democratic Republic of Congo | 138,6 |
| Djibouti | 101,1 |
| Dominican Republic | 84,8 |
| Ecuador | 70,5 |
| Egypt | 56,9 |
| El Salvador | 81,7 |
| Eritrea | 51 |
| Estonia | 77,7 |
| Ethiopia | 81,1 |
| Fiji | 78,4 |
| Former Yugoslav Republic of Macedonia | 69,9 |
| Gabon | 116,1 |
| Gambia | 51,1 |
| Georgia | 96,1 |
| Ghana | 79,4 |
| Guatemala | 84,9 |
| Guinea | 59,8 |
| Guinea-Bissau | 139,2 |
| Guyana | 60,6 |
| Haiti | 100,8 |
| Honduras | 75,9 |
| Hong Kong | 87,6 |
| Hungary | 78,1 |
| India | 51,6 |
| Indonesia | 78,7 |
| Israel | 91,5 |
| Jamaica | 91,5 |
| Japan (Naka) | 125,6 |
| Japan (Tokyo) | 132,9 |
| Jordan | 76 |
| Kazakhstan | 112,8 |
| Kenya | 88,2 |
| Kyrgyzstan | 84,6 |
| Laos | 74,7 |
| Latvia | 71,2 |
| Lebanon | 105,7 |
| Lesotho | 74,3 |
| Liberia (*1) | 0 |
| Lithuania | 73,8 |
| Madagascar | 71,9 |
| Malawi | 76,4 |
| Malaysia | 73,9 |
| Mali | 98,8 |
| Malta | 97,9 |
| Mauritania | 71,7 |
| Mauritius | 75 |
| Mexico | 77,9 |
| Moldavia (*1) | 0 |
| Morocco | 86,1 |
| Mozambique | 72,7 |
| Namibia | 79,5 |
| Nepal | 72,7 |
| New Caledonia | 120,4 |
| New Zealand | 106,7 |
| Nicaragua | 67,5 |
| Niger | 91,8 |
| Nigeria | 86,1 |
| Norway | 132,5 |
| Pakistan | 52,9 |
| Papua New Guinea | 77,3 |
| Paraguay | 66 |
| Peru | 86,5 |
| Philippines | 51,4 |
| Poland | 78 |
| Romania | 56,4 |
| Russia | 110 |
| Rwanda | 87,7 |
| Saudi Arabia | 86,4 |
| Senegal | 78,2 |
| Serbia and Montenegro | 61,7 |
| Sierra Leone | 72 |
| Singapore | 97,6 |
| Slovakia | 87,4 |
| Slovenia | 76,4 |
| Solomon Islands | 85,4 |
| Somalia (*1) | 0 |
| South Africa | 66,6 |
| South Korea | 108,2 |
| Sri Lanka | 60,8 |
| Sudan | 43,4 |
| Suriname | 54,7 |
| Swaziland | 69,7 |
| Switzerland | 118,7 |
| Syria | 67,5 |
| Taiwan | 96,2 |
| Tajikistan | 73 |
| Tanzania | 61,7 |
| Thailand | 61,8 |
| Togo | 95 |
| Trinidad and Tobago | 73,8 |
| Tunisia | 72,6 |
| Turkey | 93,2 |
| Uganda | 75,6 |
| Ukraine | 101,1 |
| United States (New York) | 106,8 |
| United States (Washington) | 103,7 |
| Uruguay | 74,8 |
| Vanuatu | 124,1 |
| Venezuela | 59,9 |
| Vietnam | 52,7 |
| West Bank — Gaza Strip | 91,3 |
| Yemen | 75,8 |
| Zambia | 55,9 |
| Zimbabwe | 62,7 |

Place of Employment

Weightings July 2005

Afghanistan (*1)

0

Albania

86,2

Algeria

89,3

Angola

126,5

Argentina

63,3

Armenia

104,9

Australia

105,3

Bangladesh

53,3

Barbados

127,4

Benin

92,8

Bolivia

52,2

Bosnia and Herzegovina

73,4

Botswana

62,8

Brazil

76,8

Bulgaria

73,9

Burkina Faso

87,7

Burundi (*1)

0

Cambodia

67,6

Cameroon

101,3

Canada

84,6

Cape Verde

74,2

Central African Republic

117,6

Chad

130,6

Chile

79,4

China

78,5

Colombia

71,3

Congo

129,8

Costa Rica

72,4

Côte d’Ivoire

111,2

Croatia

101,8

Cuba

93

Cyprus

101,3

Czech Republic

82,1

Democratic Republic of Congo

138,6

Djibouti

101,1

Dominican Republic

84,8

Ecuador

70,5

Egypt

56,9

El Salvador

81,7

Eritrea

51

Estonia

77,7

Ethiopia

81,1

Fiji

78,4

Former Yugoslav Republic of Macedonia

69,9

Gabon

116,1

Gambia

51,1

Georgia

96,1

Ghana

79,4

Guatemala

84,9

Guinea

59,8

Guinea-Bissau

139,2

Guyana

60,6

Haiti

100,8

Honduras

75,9

Hong Kong

87,6

Hungary

78,1

India

51,6

Indonesia

78,7

Israel

91,5

Jamaica

91,5

Japan (Naka)

125,6

Japan (Tokyo)

132,9

Jordan

76

Kazakhstan

112,8

Kenya

88,2

Kyrgyzstan

84,6

Laos

74,7

Latvia

71,2

Lebanon

105,7

Lesotho

74,3

Liberia (*1)

0

Lithuania

73,8

Madagascar

71,9

Malawi

76,4

Malaysia

73,9

Mali

98,8

Malta

97,9

Mauritania

71,7

Mauritius

75

Mexico

77,9

Moldavia (*1)

0

Morocco

86,1

Mozambique

72,7

Namibia

79,5

Nepal

72,7

New Caledonia

120,4

New Zealand

106,7

Nicaragua

67,5

Niger

91,8

Nigeria

86,1

Norway

132,5

Pakistan

52,9

Papua New Guinea

77,3

Paraguay

66

Peru

86,5

Philippines

51,4

Poland

78

Romania

56,4

Russia

110

Rwanda

87,7

Saudi Arabia

86,4

Senegal

78,2

Serbia and Montenegro

61,7

Sierra Leone

72

Singapore

97,6

Slovakia

87,4

Slovenia

76,4

Solomon Islands

85,4

Somalia (*1)

0

South Africa

66,6

South Korea

108,2

Sri Lanka

60,8

Sudan

43,4

Suriname

54,7

Swaziland

69,7

Switzerland

118,7

Syria

67,5

Taiwan

96,2

Tajikistan

73

Tanzania

61,7

Thailand

61,8

Togo

95

Trinidad and Tobago

73,8

Tunisia

72,6

Turkey

93,2

Uganda

75,6

Ukraine

101,1

United States (New York)

106,8

United States (Washington)

103,7

Uruguay

74,8

Vanuatu

124,1

Venezuela

59,9

Vietnam

52,7

West Bank — Gaza Strip

91,3

Yemen

75,8

Zambia

55,9

Zimbabwe

62,7

---

(*1)  Not available.

---

| 1.3.2006 | EN | Official Journal of the European Union | L 59/7 |
| --- | --- | --- | --- |

1.3.2006

EN

Official Journal of the European Union

L 59/7

---

COUNCIL REGULATION (EC) No 352/2006

of 27 February 2006

repealing Regulation (EEC) No 1461/93 concerning access to public contracts for tenderers from the United States of America

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 133 thereof,

Having regard to the proposal from the Commission,

Whereas:

| (1) | Council Regulation (EEC) No 1461/93 (1), restricts access for United States tenderers in respect of certain contracts awarded by certain public authorities in response to certain measures taken by the United States under Title VII of its 1988 Trade Act in respect of Community tenderers. |
| --- | --- |

(1)

Council Regulation (EEC) No 1461/93 (1), restricts access for United States tenderers in respect of certain contracts awarded by certain public authorities in response to certain measures taken by the United States under Title VII of its 1988 Trade Act in respect of Community tenderers.

| (2) | The decision of the United States of America to repeal the sanctions imposed under Title VII of its 1988 Trade Act will take effect as of 1 March 2006. |
| --- | --- |

(2)

The decision of the United States of America to repeal the sanctions imposed under Title VII of its 1988 Trade Act will take effect as of 1 March 2006.

| (3) | Regulation (EEC) No 1461/93 should therefore be repealed, |
| --- | --- |

(3)

Regulation (EEC) No 1461/93 should therefore be repealed,

HAS ADOPTED THIS REGULATION:

Article 1

Council Regulation (EEC) No 1461/93 concerning access to public contracts for tenderers from the United States of America is hereby repealed.

Article 2

This Regulation shall enter into force on the day of its publication in the Official Journal of the European Union.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, 27 February 2006.

For the Council

The President

U. PLASSNIK

---

(1)  
  OJ L 146, 17.6.1993, p. 1.

1

---

| 1.3.2006 | EN | Official Journal of the European Union | L 59/8 |
| --- | --- | --- | --- |

1.3.2006

EN

Official Journal of the European Union

L 59/8

---

COMMISSION REGULATION (EC) No 353/2006

of 28 February 2006

establishing the standard import values for determining the entry price of certain fruit and vegetables

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Community,

Having regard to Commission Regulation (EC) No 3223/94 of 21 December 1994 on detailed rules for the application of the import arrangements for fruit and vegetables (1), and in particular Article 4(1) thereof,

Whereas:

| (1) | Regulation (EC) No 3223/94 lays down, pursuant to the outcome of the Uruguay Round multilateral trade negotiations, the criteria whereby the Commission fixes the standard values for imports from third countries, in respect of the products and periods stipulated in the Annex thereto. |
| --- | --- |

(1)

Regulation (EC) No 3223/94 lays down, pursuant to the outcome of the Uruguay Round multilateral trade negotiations, the criteria whereby the Commission fixes the standard values for imports from third countries, in respect of the products and periods stipulated in the Annex thereto.

| (2) | In compliance with the above criteria, the standard import values must be fixed at the levels set out in the Annex to this Regulation, |
| --- | --- |

(2)

In compliance with the above criteria, the standard import values must be fixed at the levels set out in the Annex to this Regulation,

HAS ADOPTED THIS REGULATION:

Article 1

The standard import values referred to in Article 4 of Regulation (EC) No 3223/94 shall be fixed as indicated in the Annex hereto.

Article 2

This Regulation shall enter into force on 1 March 2006.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, 28 February 2006.

For the Commission

J. L. DEMARTY

Director-General for Agriculture and Rural Development

---

(1)  
  OJ L 337, 24.12.1994, p. 66. Regulation as last amended by Regulation (EC) No 386/2005 (OJ L 62, 9.3.2005, p. 3).

1

---

ANNEX

to Commission Regulation of 28 February 2006 establishing the standard import values for determining the entry price of certain fruit and vegetables

| (EUR/100 kg) |
| --- |
| CN code | Third country code (1) | Standard import value |
| 0702 00 00 | 052 | 80,9 |
| 204 | 41,2 |
| 212 | 94,6 |
| 999 | 72,2 |
| 0707 00 05 | 052 | 155,9 |
| 068 | 138,2 |
| 204 | 68,1 |
| 999 | 120,7 |
| 0709 10 00 | 220 | 57,6 |
| 999 | 57,6 |
| 0709 90 70 | 052 | 133,1 |
| 204 | 55,8 |
| 999 | 94,5 |
| 0805 10 20 | 052 | 53,7 |
| 204 | 46,5 |
| 212 | 42,5 |
| 220 | 41,6 |
| 624 | 63,0 |
| 999 | 49,5 |
| 0805 50 10 | 052 | 43,1 |
| 220 | 39,9 |
| 624 | 57,5 |
| 999 | 46,8 |
| 0808 10 80 | 388 | 115,2 |
| 400 | 126,6 |
| 404 | 103,1 |
| 528 | 89,1 |
| 720 | 79,4 |
| 999 | 102,7 |
| 0808 20 50 | 220 | 60,6 |
| 388 | 87,6 |
| 400 | 93,6 |
| 512 | 65,7 |
| 528 | 70,8 |
| 720 | 45,0 |
| 999 | 70,6 |

(EUR/100 kg)

CN code

Third country code (1)

Standard import value

0702 00 00

052

80,9

204

41,2

212

94,6

999

72,2

0707 00 05

052

155,9

068

138,2

204

68,1

999

120,7

0709 10 00

220

57,6

999

57,6

0709 90 70

052

133,1

204

55,8

999

94,5

0805 10 20

052

53,7

204

46,5

212

42,5

220

41,6

624

63,0

999

49,5

0805 50 10

052

43,1

220

39,9

624

57,5

999

46,8

0808 10 80

388

115,2

400

126,6

404

103,1

528

89,1

720

79,4

999

102,7

0808 20 50

220

60,6

388

87,6

400

93,6

512

65,7

528

70,8

720

45,0

999

70,6

---

(1)  Country nomenclature as fixed by Commission Regulation (EC) No 750/2005 (OJ L 126, 19.5.2005, p. 12). Code ‘
  999
  ’ stands for ‘of other origin’.

---

| 1.3.2006 | EN | Official Journal of the European Union | L 59/10 |
| --- | --- | --- | --- |

1.3.2006

EN

Official Journal of the European Union

L 59/10

---

COMMISSION REGULATION (EC) No 354/2006

of 28 February 2006

amending Regulation (EC) No 639/2003 laying down detailed rules pursuant to Council Regulation (EC) No 1254/1999 as regards requirements for the granting of export refunds related to the welfare of live bovine animals during transport

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to Council Regulation (EC) No 1254/1999 of 17 May 1999 on the common organisation of the market in beef and veal (1), and in particular Article 33(12) thereof,

Whereas:

| (1) | In an exchange of letters between the Commission of the European Communities and the Office international des épizooties (OIE) (2), the two parties agreed to act in collaboration. With the support of the Community, the OIE subsequently adopted, in May 2005, principles and specific guidelines for the welfare of animals subject to international trade, and in particular in relation to sea, land and air transport, as Section 3.7 of the Terrestrial Animal Health Code. In order to give effect to Article 3.7.2.1 of the Guidelines for the Transport of Animals by Sea and Article 3.7.3.1 of the Guidelines for the Transport of Animals by Land, which define the responsibilities of the Competent Authorities, it is appropriate to strengthen the instruments for the monitoring and evaluation of the welfare performance by improving the reporting system of inspections performed by the Member States targeting animal welfare conditions for the animals exported from the Community. |
| --- | --- |

(1)

In an exchange of letters between the Commission of the European Communities and the Office international des épizooties (OIE) (2), the two parties agreed to act in collaboration. With the support of the Community, the OIE subsequently adopted, in May 2005, principles and specific guidelines for the welfare of animals subject to international trade, and in particular in relation to sea, land and air transport, as Section 3.7 of the Terrestrial Animal Health Code. In order to give effect to Article 3.7.2.1 of the Guidelines for the Transport of Animals by Sea and Article 3.7.3.1 of the Guidelines for the Transport of Animals by Land, which define the responsibilities of the Competent Authorities, it is appropriate to strengthen the instruments for the monitoring and evaluation of the welfare performance by improving the reporting system of inspections performed by the Member States targeting animal welfare conditions for the animals exported from the Community.

| (2) | To facilitate an in-depth evaluation on the application of Commission Regulation (EC) No 639/2003 (3), Member States should be required to provide detailed statistical information on cases of non-payment of export refunds. To this end, information should be concentrated at the level of the paying agencies, which will also contribute to gain additional transparency. It should therefore be provided that the veterinarian authority responsible for the exit point forwards a copy of the inspection report of the exit point to the paying agency. |
| --- | --- |

(2)

To facilitate an in-depth evaluation on the application of Commission Regulation (EC) No 639/2003 (3), Member States should be required to provide detailed statistical information on cases of non-payment of export refunds. To this end, information should be concentrated at the level of the paying agencies, which will also contribute to gain additional transparency. It should therefore be provided that the veterinarian authority responsible for the exit point forwards a copy of the inspection report of the exit point to the paying agency.

| (3) | Regulation (EC) No 639/2003 provides for checks to be carried out after leaving the customs territory of the Community. Moreover, it provides that checks may only be carried out by a veterinarian. In order to strengthen the effectiveness of these checks it should be provided that they may only be carried out by a veterinarian who holds a formal qualification in veterinary medicine within the meaning of Council Directive 78/1026/EEC of 18 December 1978 concerning the mutual recognition of diplomas, certificates and other evidence of formal qualifications in veterinary medicine, including measures to facilitate the effective exercise of the right of establishment and freedom to provide services (4). |
| --- | --- |

(3)

Regulation (EC) No 639/2003 provides for checks to be carried out after leaving the customs territory of the Community. Moreover, it provides that checks may only be carried out by a veterinarian. In order to strengthen the effectiveness of these checks it should be provided that they may only be carried out by a veterinarian who holds a formal qualification in veterinary medicine within the meaning of Council Directive 78/1026/EEC of 18 December 1978 concerning the mutual recognition of diplomas, certificates and other evidence of formal qualifications in veterinary medicine, including measures to facilitate the effective exercise of the right of establishment and freedom to provide services (4).

| (4) | Alternatively, without prejudice to the respective competences of the Community and the Member States, Member States should be required to verify that the international control and supervisory agencies check that veterinarians holding a qualification not covered by Directive 78/1026/EEC possess the knowledge of the requirements imposed by Council Directive 91/628/EEC of 19 November 1991 on the protection of animals during transport and amending Directives 90/425/EEC and 91/496/EEC (5). |
| --- | --- |

(4)

Alternatively, without prejudice to the respective competences of the Community and the Member States, Member States should be required to verify that the international control and supervisory agencies check that veterinarians holding a qualification not covered by Directive 78/1026/EEC possess the knowledge of the requirements imposed by Council Directive 91/628/EEC of 19 November 1991 on the protection of animals during transport and amending Directives 90/425/EEC and 91/496/EEC (5).

| (5) | Regulation (EC) No 639/2003 should therefore be amended accordingly. |
| --- | --- |

(5)

Regulation (EC) No 639/2003 should therefore be amended accordingly.

| (6) | This Regulation should apply after an appropriate timeframe for the implementation of the amendments. |
| --- | --- |

(6)

This Regulation should apply after an appropriate timeframe for the implementation of the amendments.

| (7) | The Management Committee for Beef and Veal has not delivered an opinion within the time-limit set by its chairman, |
| --- | --- |

(7)

The Management Committee for Beef and Veal has not delivered an opinion within the time-limit set by its chairman,

HAS ADOPTED THIS REGULATION:

Article 1

Regulation (EC) No 639/2003 is amended as follows:

| 1. | In Article 2(2), the third subparagraph is replaced by the following:
  ‘The veterinarian authority responsible for the exit point shall keep this report for at least three years. A copy of this report shall be sent to the paying agency.’ |
| --- | --- |

1.

In Article 2(2), the third subparagraph is replaced by the following:

‘The veterinarian authority responsible for the exit point shall keep this report for at least three years. A copy of this report shall be sent to the paying agency.’

| 2. | In Article 3(2), the second subparagraph is replaced by the following:
  ‘The checks provided for in paragraph 1 shall be carried out by a veterinarian holding a diploma, certificate or other evidence of formal qualification in veterinary medicine as referred to in Article 2 of Council Directive 78/1026/EEC (*1). However, the Member States, which have approved the international control and supervisory agencies, referred to in the first subparagraph of this paragraph shall verify that these agencies check that veterinarians holding a qualification not covered by that Directive possess the knowledge of the requirements imposed by Directive 91/628/EEC. These checks shall be carried out in a reasonable, objective and impartial manner through appropriate procedures.

  (*1)  
  OJ L 362, 23.12.1978, p. 1.’
  " |
| --- | --- |

2.

In Article 3(2), the second subparagraph is replaced by the following:

‘The checks provided for in paragraph 1 shall be carried out by a veterinarian holding a diploma, certificate or other evidence of formal qualification in veterinary medicine as referred to in Article 2 of Council Directive 78/1026/EEC (*1). However, the Member States, which have approved the international control and supervisory agencies, referred to in the first subparagraph of this paragraph shall verify that these agencies check that veterinarians holding a qualification not covered by that Directive possess the knowledge of the requirements imposed by Directive 91/628/EEC. These checks shall be carried out in a reasonable, objective and impartial manner through appropriate procedures.

(*1)  
  OJ L 362, 23.12.1978, p. 1.’
  "

| 3. | In Article 8, point (d) is replaced by the following:






  ‘(d) | the reasons for the non-payment and the recovery of the refund for the animals referred to in points (b) and (c), as well as the number of those animals recorded under category B, C and D respectively as referred to in Annexes I, II and III; |
| --- | --- | --- |

3.

In Article 8, point (d) is replaced by the following:

‘(d)

the reasons for the non-payment and the recovery of the refund for the animals referred to in points (b) and (c), as well as the number of those animals recorded under category B, C and D respectively as referred to in Annexes I, II and III;

| (da) | the numbers of penalties for each category defined in Article 6(1) and (2) with the corresponding numbers of animals and amounts of refund not paid;’. |
| --- | --- |

(da)

the numbers of penalties for each category defined in Article 6(1) and (2) with the corresponding numbers of animals and amounts of refund not paid;’.

Article 2

This Regulation shall enter into force on the seventh day following its publication in the Official Journal of the European Union.

Article 1(1) and (2) shall apply to the export declarations accepted from 1 January 2007.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, 28 February 2006.

For the Commission

Mariann FISCHER BOEL

Member of the Commission

---

(1)  
  OJ L 160, 26.6.1999, p. 21. Regulation as last amended by Regulation (EC) No 1913/2005 (OJ L 307, 25.11.2005, p. 2).

1

(2)  
  OJ C 215, 27.8.2004, p. 3.

2

(3)  
  OJ L 93, 10.4.2003, p. 10. Regulation as last amended by Regulation (EC) No 1979/2004 (OJ L 342, 18.11.2004, p. 23).

3

(4)  
  OJ L 362, 23.12.1978, p. 1. Directive as last amended by Directive 2001/19/EC of the European Parliament and of the Council (OJ L 206, 31.7.2001, p. 1).

4

(5)  
  OJ L 340, 11.12.1991, p. 17. Directive as last amended by Regulation (EC) No 806/2003 (OJ L 122, 16.5.2003, p. 1).

5

---

| 1.3.2006 | EN | Official Journal of the European Union | L 59/12 |
| --- | --- | --- | --- |

1.3.2006

EN

Official Journal of the European Union

L 59/12

---

COMMISSION REGULATION (EC) No 355/2006

of 28 February 2006

imposing a provisional anti-dumping duty on imports of certain side-by-side refrigerators originating in the Republic of Korea

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Community,

Having regard to Council Regulation (EC) No 384/96 of 22 December 1995 on protection against dumped imports from countries not members of the European Community (1) (the basic Regulation) and in particular Article 7 thereof,

After consulting the Advisory Committee,

Whereas:

1.   PROCEDURE

1.1.   Initiation

| (1) | On 18 April 2005, a complaint concerning imports of certain side-by-side refrigerators originating in the Republic of Korea was lodged by Whirlpool Europe srl. (the complainant) representing a major proportion of the Community production of side-by-side refrigerators. |
| --- | --- |

(1)

On 18 April 2005, a complaint concerning imports of certain side-by-side refrigerators originating in the Republic of Korea was lodged by Whirlpool Europe srl. (the complainant) representing a major proportion of the Community production of side-by-side refrigerators.

| (2) | This complaint contained evidence of dumping of the said product and of material injury resulting therefrom, which was considered sufficient to justify the opening of a proceeding. |
| --- | --- |

(2)

This complaint contained evidence of dumping of the said product and of material injury resulting therefrom, which was considered sufficient to justify the opening of a proceeding.

| (3) | On 2 June 2005, the proceeding was initiated by the publication of a notice of initiation in the Official Journal of the European Union (2). |
| --- | --- |

(3)

On 2 June 2005, the proceeding was initiated by the publication of a notice of initiation in the Official Journal of the European Union (2).

Official Journal of the European Union

2

1.2.   Parties concerned by the proceeding

| (4) | The Commission officially advised the complainant, Korean exporting producers, traders, importers, suppliers and retailers known to be concerned, as well as associations known to be concerned and representatives of the Republic of Korea, of the initiation of the proceeding. Interested parties were given an opportunity to make their views known in writing and to request a hearing within the time-limit set in the notice of initiation. |
| --- | --- |

(4)

The Commission officially advised the complainant, Korean exporting producers, traders, importers, suppliers and retailers known to be concerned, as well as associations known to be concerned and representatives of the Republic of Korea, of the initiation of the proceeding. Interested parties were given an opportunity to make their views known in writing and to request a hearing within the time-limit set in the notice of initiation.

| (5) | The Commission sought and verified all the information deemed necessary for a provisional determination of dumping, resulting injury and Community interest. To this end, the Commission sent questionnaires to all parties known to be concerned and to all the other companies that made themselves known within the deadlines set out in the notice of initiation. Replies were received from three Korean exporting producers and their related importers in the Community, from the complainant, from one unrelated importer, from two suppliers and from two retailers in the Community. |
| --- | --- |

(5)

The Commission sought and verified all the information deemed necessary for a provisional determination of dumping, resulting injury and Community interest. To this end, the Commission sent questionnaires to all parties known to be concerned and to all the other companies that made themselves known within the deadlines set out in the notice of initiation. Replies were received from three Korean exporting producers and their related importers in the Community, from the complainant, from one unrelated importer, from two suppliers and from two retailers in the Community.

| (6) | Verification visits were carried out at the premises of the following companies:






  (a) | Producers in the Community:







  — | Whirlpool Europe srl, Varese, Italy; |
| --- | --- | --- | --- |

(6)

Verification visits were carried out at the premises of the following companies:

(a)

Producers in the Community:

Producers in the Community:

—

Whirlpool Europe srl, Varese, Italy;

| (b) | Unrelated importers in the Community:







  — | Indesit Company SpA, Fabriano, Italy; |
| --- | --- | --- |

(b)

Unrelated importers in the Community:

Unrelated importers in the Community:

—

Indesit Company SpA, Fabriano, Italy;

| (c) | Retailers in the Community:







  — | Media-Saturn Systemzentrale GmbH, Ingolstadt, Germany; |
| --- | --- | --- |

(c)

Retailers in the Community:

Retailers in the Community:

—

Media-Saturn Systemzentrale GmbH, Ingolstadt, Germany;

| (d) | Exporting producers in Korea:







  — | Daewoo Electronics Corporation, Seoul, |
| --- | --- | --- |

(d)

Exporting producers in Korea:

Exporting producers in Korea:

—

Daewoo Electronics Corporation, Seoul,

| — | LG Electronics Corporation, Seoul, |
| --- | --- |

—

LG Electronics Corporation, Seoul,

| — | Samsung Electronics Corporation, Seoul; |
| --- | --- |

—

Samsung Electronics Corporation, Seoul;

| (e) | Related importers in the Community:







  — | Daewoo Electronics Sales UK, Wokingham, United Kingdom, |
| --- | --- | --- |

(e)

Related importers in the Community:

Related importers in the Community:

—

Daewoo Electronics Sales UK, Wokingham, United Kingdom,

| — | LG Electronics Benelux BV, Almere, The Netherlands, |
| --- | --- |

—

LG Electronics Benelux BV, Almere, The Netherlands,

| — | LG Electronics España SA, Madrid, Spain, |
| --- | --- |

—

LG Electronics España SA, Madrid, Spain,

| — | LG Electronics UK Limited, Slough, United Kingdom, |
| --- | --- |

—

LG Electronics UK Limited, Slough, United Kingdom,

| — | Samsung Electronics Benelux BV, Delft, The Netherlands, |
| --- | --- |

—

Samsung Electronics Benelux BV, Delft, The Netherlands,

| — | Samsung Electronics Iberia SA, Barcelona, Spain, |
| --- | --- |

—

Samsung Electronics Iberia SA, Barcelona, Spain,

| — | Samsung Electronics UK Limited, Chertsey, United Kingdom. |
| --- | --- |

—

Samsung Electronics UK Limited, Chertsey, United Kingdom.

| (7) | All interested parties, who so requested and showed that there were particular reasons why they should be heard, were granted a hearing. |
| --- | --- |

(7)

All interested parties, who so requested and showed that there were particular reasons why they should be heard, were granted a hearing.

1.3.   Investigation period

| (8) | The investigation of dumping and injury covered the period from 1 April 2004 to 31 March 2005 (‘investigation period’ or ‘IP’). With respect to the trends relevant for the injury assessment, the Commission analysed data covering the period from 1 January 2002 to 31 March 2005 (period considered). |
| --- | --- |

(8)

The investigation of dumping and injury covered the period from 1 April 2004 to 31 March 2005 (‘investigation period’ or ‘IP’). With respect to the trends relevant for the injury assessment, the Commission analysed data covering the period from 1 January 2002 to 31 March 2005 (period considered).

2.   PRODUCT CONCERNED AND LIKE PRODUCT

2.1.   Product concerned

| (9) | The product concerned is side-by-side refrigerators, i.e. combined refrigerator-freezers of a capacity exceeding 400 litres, with at least two separate external doors fitted side-by-side, originating in the Republic of Korea, currently classifiable within CN code ex 8418 10 20. |
| --- | --- |

(9)

The product concerned is side-by-side refrigerators, i.e. combined refrigerator-freezers of a capacity exceeding 400 litres, with at least two separate external doors fitted side-by-side, originating in the Republic of Korea, currently classifiable within CN code ex 8418 10 20.

| (10) | One white goods producer in the Community requested the inclusion of refrigerator and freezer sets which, placed side-by-side, can be joined to form one system by using a special kit. The issue was investigated and it was concluded that this product consists of two distinct appliances which can be purchased and function independently of each-other. Therefore, this product is not a combined refrigerator-freezer and it, consequently, does not fall within the product definition. |
| --- | --- |

(10)

One white goods producer in the Community requested the inclusion of refrigerator and freezer sets which, placed side-by-side, can be joined to form one system by using a special kit. The issue was investigated and it was concluded that this product consists of two distinct appliances which can be purchased and function independently of each-other. Therefore, this product is not a combined refrigerator-freezer and it, consequently, does not fall within the product definition.

| (11) | According to one exporting producer, all refrigerators should have been included in the scope of the proceeding as they serve the same purpose, i.e. to preserve food and beverage, and as most of them have both a refrigerator compartment and a freezer compartment. |
| --- | --- |

(11)

According to one exporting producer, all refrigerators should have been included in the scope of the proceeding as they serve the same purpose, i.e. to preserve food and beverage, and as most of them have both a refrigerator compartment and a freezer compartment.

| (12) | Additionally, the same company claimed that the product description in the notice of initiation was erroneous. According to this company, in the industry ‘side-by-side refrigerators’ were understood to be refrigerators with a refrigerator compartment and a freezer compartment located side-by-side to each other, with separate external doors for each compartment. The company claimed that should the definition of the product concerned in the notice of initiation be maintained, certain ‘bottom mount freezers’, namely combined refrigerator-freezers with two doors on the refrigerator compartment above and one door on the freezer compartment below, would be included in the investigation whereas comparable models with one door on each compartment would be excluded. The company therefore claimed that either all refrigerator-freezer combinations with three or more doors should be excluded from the proceeding or its scope should be enlarged by including all combined refrigerator-freezers. |
| --- | --- |

(12)

Additionally, the same company claimed that the product description in the notice of initiation was erroneous. According to this company, in the industry ‘side-by-side refrigerators’ were understood to be refrigerators with a refrigerator compartment and a freezer compartment located side-by-side to each other, with separate external doors for each compartment. The company claimed that should the definition of the product concerned in the notice of initiation be maintained, certain ‘bottom mount freezers’, namely combined refrigerator-freezers with two doors on the refrigerator compartment above and one door on the freezer compartment below, would be included in the investigation whereas comparable models with one door on each compartment would be excluded. The company therefore claimed that either all refrigerator-freezer combinations with three or more doors should be excluded from the proceeding or its scope should be enlarged by including all combined refrigerator-freezers.

| (13) | As regards the argument that all refrigerators should have been included as they serve the same purpose, it is noted that the market of side-by-side refrigerators clearly is a separate and distinct market segment. The specific physical characteristics, notably the two large doors placed side-by-side, give a side-by-side refrigerator its own specific place on the market of combined refrigerator-freezers. This fact is also acknowledged by producers, distributors and sellers who market the product separately as a ‘premium’ kind of combined refrigerator-freezer. |
| --- | --- |

(13)

As regards the argument that all refrigerators should have been included as they serve the same purpose, it is noted that the market of side-by-side refrigerators clearly is a separate and distinct market segment. The specific physical characteristics, notably the two large doors placed side-by-side, give a side-by-side refrigerator its own specific place on the market of combined refrigerator-freezers. This fact is also acknowledged by producers, distributors and sellers who market the product separately as a ‘premium’ kind of combined refrigerator-freezer.

| (14) | As regards the second argument, it has been established in the investigation that there is no commonly used definition of side-by-side refrigerators. The three doors’ combined refrigerator-freezer as mentioned under recital (12), however, can be found alongside all other models of side-by-side refrigerators in the market place. The exporting producer which made the above claims in the past also marketed these combined refrigerator-freezers explicitly as ‘three door side-by-side refrigerators’. |
| --- | --- |

(14)

As regards the second argument, it has been established in the investigation that there is no commonly used definition of side-by-side refrigerators. The three doors’ combined refrigerator-freezer as mentioned under recital (12), however, can be found alongside all other models of side-by-side refrigerators in the market place. The exporting producer which made the above claims in the past also marketed these combined refrigerator-freezers explicitly as ‘three door side-by-side refrigerators’.

| (15) | It is therefore provisionally concluded that although there are differences in volume, optional features and materials used, all types of side-by-side refrigerators, including three-door combined refrigerator-freezers with bottom-mount freezers, share the same basic physical and technical characteristics and are basically used for the same purposes. |
| --- | --- |

(15)

It is therefore provisionally concluded that although there are differences in volume, optional features and materials used, all types of side-by-side refrigerators, including three-door combined refrigerator-freezers with bottom-mount freezers, share the same basic physical and technical characteristics and are basically used for the same purposes.

| (16) | Consequently, the comments of this exporting producer did not justify changing the description of the product concerned as set out in paragraph 2 of the notice of initiation. A minor change in the wording with no effect on the product scope covered was, however, found necessary in order to align the product definition with the description in the Combined Nomenclature. |
| --- | --- |

(16)

Consequently, the comments of this exporting producer did not justify changing the description of the product concerned as set out in paragraph 2 of the notice of initiation. A minor change in the wording with no effect on the product scope covered was, however, found necessary in order to align the product definition with the description in the Combined Nomenclature.

2.2.   Like product

| (17) | The product concerned, side-by-side refrigerators produced and sold in the Community by the Community industry and side-by-side refrigerators produced and sold in the Republic of Korea were found to have essentially the same physical and technical characteristics and the same basic uses. They are therefore provisionally considered to be alike within the meaning of Article 1(4) of the basic Regulation. |
| --- | --- |

(17)

The product concerned, side-by-side refrigerators produced and sold in the Community by the Community industry and side-by-side refrigerators produced and sold in the Republic of Korea were found to have essentially the same physical and technical characteristics and the same basic uses. They are therefore provisionally considered to be alike within the meaning of Article 1(4) of the basic Regulation.

3.   DUMPING

3.1.   Normal value

| (18) | For the determination of normal value the Commission first established, for each of the exporting producers, whether its total domestic sales of the like product were representative in comparison with its total export sales to the Community. In accordance with Article 2(2) of the basic Regulation, domestic sales were considered representative when the total domestic sales volume of each exporting producer was at least 5 % of its total export sales volume to the Community. In the case of all exporting producers their domestic sales were found to be representative within the meaning of Article 2(2) of the basic Regulation. |
| --- | --- |

(18)

For the determination of normal value the Commission first established, for each of the exporting producers, whether its total domestic sales of the like product were representative in comparison with its total export sales to the Community. In accordance with Article 2(2) of the basic Regulation, domestic sales were considered representative when the total domestic sales volume of each exporting producer was at least 5 % of its total export sales volume to the Community. In the case of all exporting producers their domestic sales were found to be representative within the meaning of Article 2(2) of the basic Regulation.

| (19) | The Commission subsequently identified the types of the like product sold domestically which were identical or directly comparable to the types sold for export to the Community. For each of those types, it was established whether domestic sales were sufficiently representative for the purposes of Article 2(2) of the basic Regulation. Domestic sales of a particular type were considered sufficiently representative when the total domestic sales volume of that type during the IP represented 5 % or more of the total sales volume of the comparable type exported to the Community. |
| --- | --- |

(19)

The Commission subsequently identified the types of the like product sold domestically which were identical or directly comparable to the types sold for export to the Community. For each of those types, it was established whether domestic sales were sufficiently representative for the purposes of Article 2(2) of the basic Regulation. Domestic sales of a particular type were considered sufficiently representative when the total domestic sales volume of that type during the IP represented 5 % or more of the total sales volume of the comparable type exported to the Community.

| (20) | The Commission subsequently examined whether the domestic sales of each type of the product concerned, sold domestically in representative quantities, could be considered as being made in the ordinary course of trade pursuant to Article 2(4) of the basic Regulation. This was done by establishing the proportion of profitable domestic sales to independent customers, of each exported product type: (a) for those product types where more than 80 % by volume of sales on the domestic market were not below unit costs, and where the weighted average sales price was equal to or higher than the unit cost, normal value, by product type, was calculated as the weighted average of all domestic sales prices of the type in question; (b) for those product types where at least 10 %, but no more than 80 %, by volume of sales on the domestic market were not below unit costs, normal value, by product type, was calculated as the weighted average of domestic sales prices which were found to be equal to or above unit costs only, of the type in question; (c) for those product types where less than 10 %, by volume of sales, on the domestic market, were not below unit costs, it was considered that the product type concerned was not sold in the ordinary course of trade. |
| --- | --- |

(20)

The Commission subsequently examined whether the domestic sales of each type of the product concerned, sold domestically in representative quantities, could be considered as being made in the ordinary course of trade pursuant to Article 2(4) of the basic Regulation. This was done by establishing the proportion of profitable domestic sales to independent customers, of each exported product type: (a) for those product types where more than 80 % by volume of sales on the domestic market were not below unit costs, and where the weighted average sales price was equal to or higher than the unit cost, normal value, by product type, was calculated as the weighted average of all domestic sales prices of the type in question; (b) for those product types where at least 10 %, but no more than 80 %, by volume of sales on the domestic market were not below unit costs, normal value, by product type, was calculated as the weighted average of domestic sales prices which were found to be equal to or above unit costs only, of the type in question; (c) for those product types where less than 10 %, by volume of sales, on the domestic market, were not below unit costs, it was considered that the product type concerned was not sold in the ordinary course of trade.

| (21) | For sales of product types not made in the ordinary course of trade, as well as for product types which were not sold in representative quantities on the domestic market, normal value had to be constructed. |
| --- | --- |

(21)

For sales of product types not made in the ordinary course of trade, as well as for product types which were not sold in representative quantities on the domestic market, normal value had to be constructed.

| (22) | To construct normal value pursuant to Article 2(3) of the basic Regulation, the selling, general and administrative (SG&A) expenses incurred and the weighted average profit realised by each of the co-operating exporting producers concerned on its domestic sales of the like product, in the ordinary course of trade, during the investigation period, was added to their own average cost of production during the investigation period. Where necessary, the costs of production and SG&A expenses reported were adjusted, before being used in the ordinary course of trade test and in constructing normal values. |
| --- | --- |

(22)

To construct normal value pursuant to Article 2(3) of the basic Regulation, the selling, general and administrative (SG&A) expenses incurred and the weighted average profit realised by each of the co-operating exporting producers concerned on its domestic sales of the like product, in the ordinary course of trade, during the investigation period, was added to their own average cost of production during the investigation period. Where necessary, the costs of production and SG&A expenses reported were adjusted, before being used in the ordinary course of trade test and in constructing normal values.

3.2.   Export price

| (23) | Most sales of each of the exporting producers concerned were made to related importers in the Community. For those sales, the export price was established on the basis of the resale price to independent customers in accordance with Article 2(9) of the basic Regulation. Adjustments were made to the resale price to the first independent buyer in the Community for all costs including duties and taxes, incurred between importation and resale, in order to establish a reliable export price at Community frontier level. These costs were freight, handling, loading, insurance and ancillary expenses, as well as SG&A expenses incurred by the related importers. The resale price was further adjusted for a reasonable profit margin which was found in the investigation to have been attained by an independent importer of the product concerned. |
| --- | --- |

(23)

Most sales of each of the exporting producers concerned were made to related importers in the Community. For those sales, the export price was established on the basis of the resale price to independent customers in accordance with Article 2(9) of the basic Regulation. Adjustments were made to the resale price to the first independent buyer in the Community for all costs including duties and taxes, incurred between importation and resale, in order to establish a reliable export price at Community frontier level. These costs were freight, handling, loading, insurance and ancillary expenses, as well as SG&A expenses incurred by the related importers. The resale price was further adjusted for a reasonable profit margin which was found in the investigation to have been attained by an independent importer of the product concerned.

| (24) | The remaining exports of the product concerned by each of the exporting producers were made directly to independent customers in the Community. For those sales, the export price was established in accordance with Article 2(8) of the basic Regulation, on the basis of prices actually paid or payable. |
| --- | --- |

(24)

The remaining exports of the product concerned by each of the exporting producers were made directly to independent customers in the Community. For those sales, the export price was established in accordance with Article 2(8) of the basic Regulation, on the basis of prices actually paid or payable.

3.3.   Comparison

| (25) | The comparison between normal value and export price was made on an ex-works basis. In order to ensure a fair comparison, account was taken, in accordance with Article 2(10) of the basic Regulation, of differences in factors which affect price comparability. Allowances for differences in packing costs, transport costs, ocean freight and insurance costs, handling costs, loading and ancillary costs, duty drawback, level of trade, after-sales costs, commissions, discounts, rebates and advertising costs were granted where applicable and justified, duly adjusted where necessary. |
| --- | --- |

(25)

The comparison between normal value and export price was made on an ex-works basis. In order to ensure a fair comparison, account was taken, in accordance with Article 2(10) of the basic Regulation, of differences in factors which affect price comparability. Allowances for differences in packing costs, transport costs, ocean freight and insurance costs, handling costs, loading and ancillary costs, duty drawback, level of trade, after-sales costs, commissions, discounts, rebates and advertising costs were granted where applicable and justified, duly adjusted where necessary.

| (26) | All three exporting producers submitted a comparison table between domestically sold models and partly comparable models sold for export to the Community, claiming, pursuant to Article 2(10)(a), an adjustment for the remaining differences in physical characteristics. For two companies, the claimed allowances per model had to be adjusted in order to properly reflect the market value of the differences in physical characteristics. On that basis, allowances for differences in physical characteristics were granted to all three exporting producers. |
| --- | --- |

(26)

All three exporting producers submitted a comparison table between domestically sold models and partly comparable models sold for export to the Community, claiming, pursuant to Article 2(10)(a), an adjustment for the remaining differences in physical characteristics. For two companies, the claimed allowances per model had to be adjusted in order to properly reflect the market value of the differences in physical characteristics. On that basis, allowances for differences in physical characteristics were granted to all three exporting producers.

| (27) | One company claimed a duty drawback adjustment pursuant to Article 2(10)(b) of the basic Regulation, basing its claim solely on the duties paid on raw materials allegedly used for the production of the product concerned. This company, however, did not substantiate the drawback of these duties upon exportation of the product concerned and, therefore, no refund of import duties could be established within the meaning of Article 2(10)(b) of the basic Regulation. Accordingly, this claim was rejected. |
| --- | --- |

(27)

One company claimed a duty drawback adjustment pursuant to Article 2(10)(b) of the basic Regulation, basing its claim solely on the duties paid on raw materials allegedly used for the production of the product concerned. This company, however, did not substantiate the drawback of these duties upon exportation of the product concerned and, therefore, no refund of import duties could be established within the meaning of Article 2(10)(b) of the basic Regulation. Accordingly, this claim was rejected.

| (28) | Two exporting producers made certain domestic sales via related retailers. They requested, pursuant to Article 2(10)(d)(i), exclusion of these retailers’ sales from the normal value computation, as they would be at a level of trade nonexistent on the Community market. The investigation showed that these related retailers sold the like product predominantly or exclusively to consumers, a level of trade which did not exist on the Community market. It was also established that the prices charged to consumers were consistently at a different level as compared to prices charged to other categories of customers. In view of the above findings and as the remaining domestic sales of both companies were found to be sufficiently representative, it was decided to exclude these sales to consumers from the normal value computation. |
| --- | --- |

(28)

Two exporting producers made certain domestic sales via related retailers. They requested, pursuant to Article 2(10)(d)(i), exclusion of these retailers’ sales from the normal value computation, as they would be at a level of trade nonexistent on the Community market. The investigation showed that these related retailers sold the like product predominantly or exclusively to consumers, a level of trade which did not exist on the Community market. It was also established that the prices charged to consumers were consistently at a different level as compared to prices charged to other categories of customers. In view of the above findings and as the remaining domestic sales of both companies were found to be sufficiently representative, it was decided to exclude these sales to consumers from the normal value computation.

| (29) | One of the exporting producers had used a related company for the ocean transport of the product concerned. The freight costs charged by this related party were found to be significantly below the market level. Therefore, these costs were replaced with the costs of an unrelated freight forwarder of which ocean transport costs for shipping the product concerned to the Community could be obtained during the course of the investigation. |
| --- | --- |

(29)

One of the exporting producers had used a related company for the ocean transport of the product concerned. The freight costs charged by this related party were found to be significantly below the market level. Therefore, these costs were replaced with the costs of an unrelated freight forwarder of which ocean transport costs for shipping the product concerned to the Community could be obtained during the course of the investigation.

| (30) | All three exporting producers claimed, pursuant to Article 2(10)(g), an adjustment for credit costs allegedly incurred on their domestic sales. These claims were based on the actual credit period taken by customers under the ‘open account’ payment system used on the Korean domestic market. It was found that under such a system, generally, the exporting producers did not actually grant specific credit periods and the credit periods taken could not be accurately determined, as receipts could not be linked to specific invoices. The exporting producers’ claims, therefore, had to be rejected. |
| --- | --- |

(30)

All three exporting producers claimed, pursuant to Article 2(10)(g), an adjustment for credit costs allegedly incurred on their domestic sales. These claims were based on the actual credit period taken by customers under the ‘open account’ payment system used on the Korean domestic market. It was found that under such a system, generally, the exporting producers did not actually grant specific credit periods and the credit periods taken could not be accurately determined, as receipts could not be linked to specific invoices. The exporting producers’ claims, therefore, had to be rejected.

3.4.   Dumping margin

| (31) | For all three exporting producers a clear pattern of export prices which significantly differed between regions was established. It was indeed found that significant volumes at low prices were concentrated on the UK and French markets. These two markets were responsible for more than 50 % of the imports of the product concerned in the Community during the IP. |
| --- | --- |

(31)

For all three exporting producers a clear pattern of export prices which significantly differed between regions was established. It was indeed found that significant volumes at low prices were concentrated on the UK and French markets. These two markets were responsible for more than 50 % of the imports of the product concerned in the Community during the IP.

| (32) | The dumping found on these markets would have been inappropriately disguised by the use of a comparison of a weighted average normal value with a weighted average of export prices to all Member States of the European Union, as the prices at dumped levels found for all three exporting producers on the UK and French markets were wholly or partly offset by higher and largely non-dumped prices on other Community markets. Such methodology would not, therefore, reflect the full degree of dumping being practised. It was accordingly found appropriate to reflect in the calculation of the dumping the significant differences in the pattern of export prices among different regions. |
| --- | --- |

(32)

The dumping found on these markets would have been inappropriately disguised by the use of a comparison of a weighted average normal value with a weighted average of export prices to all Member States of the European Union, as the prices at dumped levels found for all three exporting producers on the UK and French markets were wholly or partly offset by higher and largely non-dumped prices on other Community markets. Such methodology would not, therefore, reflect the full degree of dumping being practised. It was accordingly found appropriate to reflect in the calculation of the dumping the significant differences in the pattern of export prices among different regions.

| (33) | In this case, the transaction-to-transaction comparison was not found to be an appropriate alternative comparison method because the process of selecting individual transactions in order to make such a comparison was considered too impractical and arbitrary, with tens of thousands of export and domestic transactions. |
| --- | --- |

(33)

In this case, the transaction-to-transaction comparison was not found to be an appropriate alternative comparison method because the process of selecting individual transactions in order to make such a comparison was considered too impractical and arbitrary, with tens of thousands of export and domestic transactions.

| (34) | Consequently, according to Article 2(11) of the basic Regulation, for each co-operating exporting producer, the weighted average normal value was compared to the prices of all individual export transactions to the Community. |
| --- | --- |

(34)

Consequently, according to Article 2(11) of the basic Regulation, for each co-operating exporting producer, the weighted average normal value was compared to the prices of all individual export transactions to the Community.

| (35) | On this basis, the provisional dumping margins expressed as a percentage of the cif Community frontier price, duty unpaid, are:






  Company | Provisional dumping margin |
| --- | --- | --- |
| Daewoo Electronics Corporation | 9,1  % |
| LG Electronics Corporation | 14,3  % |
| Samsung Electronics Corporation | 4,4  % |

(35)

On this basis, the provisional dumping margins expressed as a percentage of the cif Community frontier price, duty unpaid, are:

Company

Provisional dumping margin

Daewoo Electronics Corporation

9,1  %

LG Electronics Corporation

14,3  %

Samsung Electronics Corporation

4,4  %

| (36) | Since the level of cooperation was high (100 % of the exports of the product concerned from Korea to the Community), the residual provisional dumping margin was set at the level of the highest dumping margin established for a cooperating company, i.e. at the level established for LG Electronics Corporation, namely 14,3 %. |
| --- | --- |

(36)

Since the level of cooperation was high (100 % of the exports of the product concerned from Korea to the Community), the residual provisional dumping margin was set at the level of the highest dumping margin established for a cooperating company, i.e. at the level established for LG Electronics Corporation, namely 14,3 %.

4.   INJURY

4.1.   Community production and Community industry

| (37) | Within the Community, the like product is only manufactured by the complainant. |
| --- | --- |

(37)

Within the Community, the like product is only manufactured by the complainant.

| (38) | The complainant properly co-operated in the investigation. Given that the complainant is the sole producer of the like product in the Community, its production represented, during the IP, 100 % of the Community production of the like product. |
| --- | --- |

(38)

The complainant properly co-operated in the investigation. Given that the complainant is the sole producer of the like product in the Community, its production represented, during the IP, 100 % of the Community production of the like product.

| (39) | The complainant therefore constitutes both the Community production within the meaning of Article 4(1) of the basic Regulation and the Community industry within the meaning of Article 4(1) and Article 5(4) of the basic Regulation. The complainant will also be referred to as the ‘Community industry’. |
| --- | --- |

(39)

The complainant therefore constitutes both the Community production within the meaning of Article 4(1) of the basic Regulation and the Community industry within the meaning of Article 4(1) and Article 5(4) of the basic Regulation. The complainant will also be referred to as the ‘Community industry’.

| (40) | During the start-up phase (2002), the Community industry had to resort to imports of the like product procured from its mother company in the USA. The volumes procured from this source declined sharply from 2003 onwards as the production of the newly built plant gathered pace (see recitals (80) and (81) below). As for the assessment of the situation of the Community industry (see from recital (48) below), the analysis concerns only the Community industry’s own production and not its purchases from its mother company. |
| --- | --- |

(40)

During the start-up phase (2002), the Community industry had to resort to imports of the like product procured from its mother company in the USA. The volumes procured from this source declined sharply from 2003 onwards as the production of the newly built plant gathered pace (see recitals (80) and (81) below). As for the assessment of the situation of the Community industry (see from recital (48) below), the analysis concerns only the Community industry’s own production and not its purchases from its mother company.

4.2.   Community consumption

| (41) | Community consumption was established on the basis of the sales volumes of the Community industry’s own production on the Community market, the import volumes data obtained from the three Korean co-operating exporting producers on the Community market, and the import volumes on the Community market from the USA, as obtained from the most widely used database in this particular business. The like product was not imported into the Community from any other country in the world during the period considered. |
| --- | --- |

(41)

Community consumption was established on the basis of the sales volumes of the Community industry’s own production on the Community market, the import volumes data obtained from the three Korean co-operating exporting producers on the Community market, and the import volumes on the Community market from the USA, as obtained from the most widely used database in this particular business. The like product was not imported into the Community from any other country in the world during the period considered.

| (42) | Given that the Community industry comprises only one producer, and given that the Community market for the product concerned and the like product is supplied by only three origins (the Community industry, the Korean producers and the USA), data relating to the market shares of the Community industry and of the USA are presented in an indexed format in order to preserve the confidentiality of the data submitted in confidence by the Community industry, pursuant to Article 19 of the basic Regulation. |
| --- | --- |

(42)

Given that the Community industry comprises only one producer, and given that the Community market for the product concerned and the like product is supplied by only three origins (the Community industry, the Korean producers and the USA), data relating to the market shares of the Community industry and of the USA are presented in an indexed format in order to preserve the confidentiality of the data submitted in confidence by the Community industry, pursuant to Article 19 of the basic Regulation.

| (43) | Between 2002 and the IP, the Community market for the product concerned and the like product has grown more than twofold. Community consumption was around 213 000 pieces in 2002, and around 456 000 in the IP. Specifically, it increased by 51 % in 2003, rose further by 54 percentage points in 2004, and by 10 percentage points in the IP. | 2002 | 2003 | 2004 | IP |
| --- | --- | --- | --- | --- | --- |
| Total EC consumption (pieces) | 212 755 | 321 672 | 435 158 | 456 410 |
| Index (2002 = 100) | 100 | 151 | 205 | 215 |

(43)

Between 2002 and the IP, the Community market for the product concerned and the like product has grown more than twofold. Community consumption was around 213 000 pieces in 2002, and around 456 000 in the IP. Specifically, it increased by 51 % in 2003, rose further by 54 percentage points in 2004, and by 10 percentage points in the IP.

2002

2003

2004

IP

Total EC consumption (pieces)

212 755

321 672

435 158

456 410

Index (2002 = 100)

Index (2002 = 100)

100

100

151

151

205

205

215

215

4.3.   Imports from the country concerned

(a)   Volume

| (44) | The volume of imports of the product concerned from the Republic of Korea into the Community rose massively and steadily between 2002 and the IP. It rose by 157 % between 2002 and the IP. In detail, imports from the country concerned increased by 66 % between 2002 and 2003, by a further 77 percentage points in 2004 and by a further 14 percentage points in the IP. | 2002 | 2003 | 2004 | IP |
| --- | --- | --- | --- | --- | --- |
| Volume of imports from the Republic of Korea (pieces) | 141 754 | 235 902 | 343 922 | 364 261 |
| Index (2002 = 100) | 100 | 166 | 243 | 257 |
| Market share of imports from the Republic of Korea | 66,6  % | 73,3  % | 79,0  % | 79,8  % |
| Prices of imports from the Republic of Korea (EUR/piece) | 649 | 575 | 579 | 577 |
| Index (2002 = 100) | 100 | 89 | 89 | 89 |

(44)

The volume of imports of the product concerned from the Republic of Korea into the Community rose massively and steadily between 2002 and the IP. It rose by 157 % between 2002 and the IP. In detail, imports from the country concerned increased by 66 % between 2002 and 2003, by a further 77 percentage points in 2004 and by a further 14 percentage points in the IP.

2002

2003

2004

IP

Volume of imports from the Republic of Korea (pieces)

141 754

235 902

343 922

364 261

Index (2002 = 100)

Index (2002 = 100)

100

100

166

166

243

243

257

257

Market share of imports from the Republic of Korea

66,6  %

73,3  %

79,0  %

79,8  %

Prices of imports from the Republic of Korea (EUR/piece)

649

575

579

577

Index (2002 = 100)

Index (2002 = 100)

100

100

89

89

89

89

89

89

(b)   Market share

| (45) | The market share held by exporters in the country concerned increased by around 13 percentage points during the period considered to reach a level of almost 80 % during the IP. Korean exporters gained almost 7 percentage points in 2003, and again almost 6 percentage points in 2004. The Community market is therefore characterised by an overwhelming dominance of the Korean producers. |
| --- | --- |

(45)

The market share held by exporters in the country concerned increased by around 13 percentage points during the period considered to reach a level of almost 80 % during the IP. Korean exporters gained almost 7 percentage points in 2003, and again almost 6 percentage points in 2004. The Community market is therefore characterised by an overwhelming dominance of the Korean producers.

(c)   Prices

(i)   Price evolution

| (46) | Between 2002 and the IP, the average price of imports of the product concerned originating in the Republic of Korea declined by 11 %, although there has been a constant improvement in the functionalities of the models offered for sale, year after year. Specifically, the drop in the price was concentrated in 2003 over 2002. After 2003, average prices have remained flat (see table above). |
| --- | --- |

(46)

Between 2002 and the IP, the average price of imports of the product concerned originating in the Republic of Korea declined by 11 %, although there has been a constant improvement in the functionalities of the models offered for sale, year after year. Specifically, the drop in the price was concentrated in 2003 over 2002. After 2003, average prices have remained flat (see table above).

(ii)   Price undercutting

| (47) | A comparison for comparable models of the product concerned and like product was made between the exporting producers’ and the Community industry's average selling prices in the Community. To this end, Community industry’s ex-works prices to unrelated customers, net of all rebates and taxes have been compared with the cif Community frontier prices of exporting producers of the Republic of Korea, duly adjusted for unloading and customs clearance costs. The comparison showed that during the IP the product concerned originating in the Republic of Korea sold in the Community undercut the Community industry's prices by between 34 % and 42 %, depending on the exporter concerned. |
| --- | --- |

(47)

A comparison for comparable models of the product concerned and like product was made between the exporting producers’ and the Community industry's average selling prices in the Community. To this end, Community industry’s ex-works prices to unrelated customers, net of all rebates and taxes have been compared with the cif Community frontier prices of exporting producers of the Republic of Korea, duly adjusted for unloading and customs clearance costs. The comparison showed that during the IP the product concerned originating in the Republic of Korea sold in the Community undercut the Community industry's prices by between 34 % and 42 %, depending on the exporter concerned.

4.4.   Situation of the Community industry

| (48) | Pursuant to Article 3(5) of the basic Regulation, the Commission examined all relevant economic factors and indices having a bearing on the state of the Community industry. |
| --- | --- |

(48)

Pursuant to Article 3(5) of the basic Regulation, the Commission examined all relevant economic factors and indices having a bearing on the state of the Community industry.

| (49) | Given that the Community industry comprises only one producer, data relating to the Community industry are presented in an indexed format and/or in ranges in order to preserve confidentiality, pursuant to Article 19 of the basic Regulation. It must also be noted that the Community industry started its operation in April 2002, which explains that the injury trends described hereafter generally show sharp movements between 2002 and 2003, which may be upwards (like for the volume of production) or downwards (like for investments). |
| --- | --- |

(49)

Given that the Community industry comprises only one producer, data relating to the Community industry are presented in an indexed format and/or in ranges in order to preserve confidentiality, pursuant to Article 19 of the basic Regulation. It must also be noted that the Community industry started its operation in April 2002, which explains that the injury trends described hereafter generally show sharp movements between 2002 and 2003, which may be upwards (like for the volume of production) or downwards (like for investments).

(a)   Production

| (50) | The Community industry’s production increased by 205 % in 2003, increased further by 136 percentage points in 2004, when it reached a peak, and declined by 36 percentage points in the IP. During the IP, the Community industry’s production volume ranged between 70 000 pieces and 100 000 pieces. | 2002 | 2003 | 2004 | IP |
| --- | --- | --- | --- | --- | --- |
| Production (pieces) | cannot be disclosed |
| Index (2002 = 100) | 100 | 305 | 441 | 405 |

(50)

The Community industry’s production increased by 205 % in 2003, increased further by 136 percentage points in 2004, when it reached a peak, and declined by 36 percentage points in the IP. During the IP, the Community industry’s production volume ranged between 70 000 pieces and 100 000 pieces.

2002

2003

2004

IP

Production (pieces)

cannot be disclosed

Index (2002 = 100)

Index (2002 = 100)

100

100

305

305

441

441

405

405

(b)   Capacity and capacity utilisation rates

| (51) | The production capacity first increased by 125 % in 2003, increased further by 113 percentage points in 2004 and stayed at this level in the IP. During the IP, the Community industry’s production capacity ranged between 100 000 pieces and 150 000 pieces. | 2002 | 2003 | 2004 | IP |
| --- | --- | --- | --- | --- | --- |
| Production capacity (pieces) | cannot be disclosed |
| Index (2002 = 100) | 100 | 225 | 338 | 338 |
| Capacity utilisation | cannot be disclosed |
| Index (2002 = 100) | 100 | 136 | 131 | 120 |

(51)

The production capacity first increased by 125 % in 2003, increased further by 113 percentage points in 2004 and stayed at this level in the IP. During the IP, the Community industry’s production capacity ranged between 100 000 pieces and 150 000 pieces.

2002

2003

2004

IP

Production capacity (pieces)

cannot be disclosed

Index (2002 = 100)

Index (2002 = 100)

100

100

225

225

338

338

338

338

Capacity utilisation

cannot be disclosed

Index (2002 = 100)

Index (2002 = 100)

100

100

136

136

131

131

120

120

| (52) | Capacity utilisation rose by 36 % in 2003, when it reached its peak. In 2004, it declined by 5 percentage points, and dropped further by 11 percentage points in the IP. During the IP, the Community industry’s capacity utilisation ranged between 60 % and 90 %. |
| --- | --- |

(52)

Capacity utilisation rose by 36 % in 2003, when it reached its peak. In 2004, it declined by 5 percentage points, and dropped further by 11 percentage points in the IP. During the IP, the Community industry’s capacity utilisation ranged between 60 % and 90 %.

(c)   Stocks

| (53) | During the IP, inventories of finished products represented around 30 % of the Community industry’s total production volume, a level that is considered high and excessive. The level of closing stocks of the Community industry first decreased by 29 % in 2003 and then sharply increased by 140 percentage points in 2004, before rising by a further 27 percentage points in the IP compared to 2004. During the IP, the Community industry’s stocks ranged between 10 000 pieces and 30 000 pieces. | 2002 | 2003 | 2004 | IP |
| --- | --- | --- | --- | --- | --- |
| Closing stock (pieces) | cannot be disclosed |
| Index (2002 = 100) | 100 | 71 | 211 | 238 |

(53)

During the IP, inventories of finished products represented around 30 % of the Community industry’s total production volume, a level that is considered high and excessive. The level of closing stocks of the Community industry first decreased by 29 % in 2003 and then sharply increased by 140 percentage points in 2004, before rising by a further 27 percentage points in the IP compared to 2004. During the IP, the Community industry’s stocks ranged between 10 000 pieces and 30 000 pieces.

2002

2003

2004

IP

Closing stock (pieces)

cannot be disclosed

Index (2002 = 100)

Index (2002 = 100)

100

100

71

71

211

211

238

238

(d)   Sales volume

| (54) | The sales by the Community industry of its own production on the Community market to unrelated customers first increased by 284 % in 2003, rose further by 37 percentage points in 2004, but declined by 6 percentage points in the IP. During the IP, the Community industry’s sales volume ranged between 50 000 pieces and 90 000 pieces. | 2002 | 2003 | 2004 | IP |
| --- | --- | --- | --- | --- | --- |
| EC Sales volume to unrelated customers (pieces) | cannot be disclosed |
| Index (2002 = 100) | 100 | 384 | 421 | 415 |

(54)

The sales by the Community industry of its own production on the Community market to unrelated customers first increased by 284 % in 2003, rose further by 37 percentage points in 2004, but declined by 6 percentage points in the IP. During the IP, the Community industry’s sales volume ranged between 50 000 pieces and 90 000 pieces.

2002

2003

2004

IP

EC Sales volume to unrelated customers (pieces)

cannot be disclosed

Index (2002 = 100)

Index (2002 = 100)

100

100

384

384

421

421

415

415

(e)   Market share

| (55) | The index reflecting the evolution of the market share held by the Community industry rose by 154 % in 2003, when it reached a peak, then declined by 48 percentage points in 2004 and by a further 13 percentage points in the IP. During the IP, the Community industry’s market share ranged between 10 % and 20 %. | 2002 | 2003 | 2004 | IP |
| --- | --- | --- | --- | --- | --- |
| Market share of Community industry | cannot be disclosed |
| Index (2002 = 100) | 100 | 254 | 206 | 193 |

(55)

The index reflecting the evolution of the market share held by the Community industry rose by 154 % in 2003, when it reached a peak, then declined by 48 percentage points in 2004 and by a further 13 percentage points in the IP. During the IP, the Community industry’s market share ranged between 10 % and 20 %.

2002

2003

2004

IP

Market share of Community industry

cannot be disclosed

Index (2002 = 100)

Index (2002 = 100)

100

100

254

254

206

206

193

193

(f)   Growth

| (56) | Between 2003 and the IP, when the Community consumption increased by 64 percentage points, the volume of sales of the Community industry on the Community market increased by only 31 percentage points. The Community industry lost around 4 percentage points of market share, whereas dumped imports gained around 6 percentage points of market share between 2003 and the IP. |
| --- | --- |

(56)

Between 2003 and the IP, when the Community consumption increased by 64 percentage points, the volume of sales of the Community industry on the Community market increased by only 31 percentage points. The Community industry lost around 4 percentage points of market share, whereas dumped imports gained around 6 percentage points of market share between 2003 and the IP.

(g)   Employment

| (57) | The employment level of the Community industry first increased by 110 % between 2002 and 2003, increased further by 102 percentage points in 2004, but declined by 14 percentage points in the IP. During the IP, the Community industry’s employment ranged between 300 and 500 persons. | 2002 | 2003 | 2004 | IP |
| --- | --- | --- | --- | --- | --- |
| Employment (persons) | cannot be disclosed |
| Index (2002 = 100) | 100 | 210 | 312 | 298 |

(57)

The employment level of the Community industry first increased by 110 % between 2002 and 2003, increased further by 102 percentage points in 2004, but declined by 14 percentage points in the IP. During the IP, the Community industry’s employment ranged between 300 and 500 persons.

2002

2003

2004

IP

Employment (persons)

cannot be disclosed

Index (2002 = 100)

Index (2002 = 100)

100

100

210

210

312

312

298

298

(h)   Productivity

| (58) | Productivity of the Community industry's workforce, measured as output (pieces) per person employed per year, first increased strongly by 46 % from 2002 to 2003, dropped by 5 percentage points in 2004, and decreased by a further 5 percentage points in the IP. During the IP, the Community industry’s productivity ranged between 100 pieces and 300 pieces per person. | 2002 | 2003 | 2004 | IP |
| --- | --- | --- | --- | --- | --- |
| Productivity (pieces per employee) | cannot be disclosed |
| Index (2002 = 100) | 100 | 146 | 141 | 136 |

(58)

Productivity of the Community industry's workforce, measured as output (pieces) per person employed per year, first increased strongly by 46 % from 2002 to 2003, dropped by 5 percentage points in 2004, and decreased by a further 5 percentage points in the IP. During the IP, the Community industry’s productivity ranged between 100 pieces and 300 pieces per person.

2002

2003

2004

IP

Productivity (pieces per employee)

cannot be disclosed

Index (2002 = 100)

Index (2002 = 100)

100

100

146

146

141

141

136

136

(i)   Wages

| (59) | Between 2002 and the IP, the average wage per employee declined by 16 %. Specifically, it decreased by 3 % in 2003, by a further 11 percentage points in 2004 and finally by 2 percentage points in the IP. | 2002 | 2003 | 2004 | IP |
| --- | --- | --- | --- | --- | --- |
| Annual labour cost per employee (000 EUR) | cannot be disclosed |
| Index (2002 = 100) | 100 | 97 | 86 | 84 |

(59)

Between 2002 and the IP, the average wage per employee declined by 16 %. Specifically, it decreased by 3 % in 2003, by a further 11 percentage points in 2004 and finally by 2 percentage points in the IP.

2002

2003

2004

IP

Annual labour cost per employee (000 EUR)

cannot be disclosed

Index (2002 = 100)

Index (2002 = 100)

100

100

97

97

86

86

84

84

(j)   Sales prices

| (60) | Unit prices for Community sales to unrelated customers of Community industry’s own production decreased by 4 % between 2002 and the IP, although there has been a constant improvement in the functionalities of the models offered for sale, year after year. Specifically, prices stayed approximately at the same level between 2002 and 2004, but experienced a drop by 4 percentage points in the IP. During the IP, the Community industry’s average unit price ranged between 500 and 1 500 euros. | 2002 | 2003 | 2004 | IP |
| --- | --- | --- | --- | --- | --- |
| Unit price EC market (EUR/piece) | cannot be disclosed |
| Index (2002 = 100) | 100 | 101 | 100 | 96 |

(60)

Unit prices for Community sales to unrelated customers of Community industry’s own production decreased by 4 % between 2002 and the IP, although there has been a constant improvement in the functionalities of the models offered for sale, year after year. Specifically, prices stayed approximately at the same level between 2002 and 2004, but experienced a drop by 4 percentage points in the IP. During the IP, the Community industry’s average unit price ranged between 500 and 1 500 euros.

2002

2003

2004

IP

Unit price EC market (EUR/piece)

cannot be disclosed

Index (2002 = 100)

Index (2002 = 100)

100

100

101

101

100

100

96

96

(k)   Factors affecting Community prices

| (61) | The investigation showed that dumped imports were undercutting the average depressed sales price of the Community industry by 34 to 42 % in the IP. However, on a type-by-type basis, it was found that in some instances prices offered by the exporting producers concerned were significantly lower than the above average undercutting of the Community industry’s prices. The combination of this undercutting established on a more individual product type level with the growing market share held by dumped imports certainly increased the price pressure and thus affected the domestic prices of the Community industry. |
| --- | --- |

(61)

The investigation showed that dumped imports were undercutting the average depressed sales price of the Community industry by 34 to 42 % in the IP. However, on a type-by-type basis, it was found that in some instances prices offered by the exporting producers concerned were significantly lower than the above average undercutting of the Community industry’s prices. The combination of this undercutting established on a more individual product type level with the growing market share held by dumped imports certainly increased the price pressure and thus affected the domestic prices of the Community industry.

(l)   Profitability and return on investments

| (62) | During the period considered, the profitability of the own produced sales in the Community of the Community industry, expressed as a percentage of net sales, remained negative throughout the period 2002 to the IP. Losses were very high in 2002, due to the fact that the facility started its operation that year. Profitability improved up to an almost break-even level in 2003, but subsequently deteriorated in 2004 and again reached significant losses in the IP. | 2002 | 2003 | 2004 | IP |
| --- | --- | --- | --- | --- | --- |
| Profitability of EC sales to unrelated (% of net sales) | cannot be disclosed |
| Index (2002 = – 100) | – 100 | – 5 | – 9 | – 30 |
| ROI (profit in % of net book value of investments) | cannot be disclosed |
| Index (2002 = – 100) | – 100 | – 20 | – 37 | – 123 |

(62)

During the period considered, the profitability of the own produced sales in the Community of the Community industry, expressed as a percentage of net sales, remained negative throughout the period 2002 to the IP. Losses were very high in 2002, due to the fact that the facility started its operation that year. Profitability improved up to an almost break-even level in 2003, but subsequently deteriorated in 2004 and again reached significant losses in the IP.

2002

2003

2004

IP

Profitability of EC sales to unrelated (% of net sales)

cannot be disclosed

Index (2002 = – 100)

Index (2002 = – 100)

– 100

100

– 5

5

– 9

9

– 30

30

ROI (profit in % of net book value of investments)

cannot be disclosed

Index (2002 = – 100)

Index (2002 = – 100)

– 100

100

– 20

20

– 37

37

– 123

123

| (63) | The return on investments (ROI), expressed as the profit in percent of the net book value of investments, broadly followed the above profitability trend. It also remained negative through the period considered. It first improved markedly in 2003, but then deteriorated in 2004 and the IP. |
| --- | --- |

(63)

The return on investments (ROI), expressed as the profit in percent of the net book value of investments, broadly followed the above profitability trend. It also remained negative through the period considered. It first improved markedly in 2003, but then deteriorated in 2004 and the IP.

(m)   Cash flow and ability to raise capital

| (64) | The net cash flow from operating activities remained also negative through the period considered. From its very low level of 2002, it improved up to a level close to zero, before deteriorating again in 2004 and the IP. Because of its poor return, the Community industry was unable to raise further capital from within the group to which it belongs and had to put on hold its plans for further expansion of production. Indeed, in a multinational group, like the one to which the Community industry belongs, financial resources are generally allocated to the most profitable entities. | 2002 | 2003 | 2004 | IP |
| --- | --- | --- | --- | --- | --- |
| Cash flow (000 EUR) | cannot be disclosed |
| Index (2002 = – 100) | – 100 | – 8 | – 65 | – 65 |

(64)

The net cash flow from operating activities remained also negative through the period considered. From its very low level of 2002, it improved up to a level close to zero, before deteriorating again in 2004 and the IP. Because of its poor return, the Community industry was unable to raise further capital from within the group to which it belongs and had to put on hold its plans for further expansion of production. Indeed, in a multinational group, like the one to which the Community industry belongs, financial resources are generally allocated to the most profitable entities.

2002

2003

2004

IP

Cash flow (000 EUR)

cannot be disclosed

Index (2002 = – 100)

Index (2002 = – 100)

– 100

100

– 8

8

– 65

65

– 65

65

(n)   Investments

| (65) | The Community industry's annual investments in the production of the product concerned declined sharply in 2003 as compared to 2002, which was the year when production commenced and the major investments were undertaken. In 2004 and the IP, the flow of annual investments in the manufacturing of the like product remained very stable. | 2002 | 2003 | 2004 | IP |
| --- | --- | --- | --- | --- | --- |
| Net investments (000 EUR) | cannot be disclosed |
| Index (2002 = 100) | 100 | 13 | 14 | 14 |

(65)

The Community industry's annual investments in the production of the product concerned declined sharply in 2003 as compared to 2002, which was the year when production commenced and the major investments were undertaken. In 2004 and the IP, the flow of annual investments in the manufacturing of the like product remained very stable.

2002

2003

2004

IP

Net investments (000 EUR)

cannot be disclosed

Index (2002 = 100)

Index (2002 = 100)

100

100

13

13

14

14

14

14

(o)   Magnitude of dumping margin

| (66) | As concerns the impact on the Community industry of the magnitude of the actual margins of dumping, given the volume and the prices of the imports from the country concerned, this impact cannot be considered to be negligible. |
| --- | --- |

(66)

As concerns the impact on the Community industry of the magnitude of the actual margins of dumping, given the volume and the prices of the imports from the country concerned, this impact cannot be considered to be negligible.

(p)   Recovery from past dumping

| (67) | In the absence of any information on the existence of dumping prior to the situation assessed in the present proceeding, this issue is considered irrelevant. |
| --- | --- |

(67)

In the absence of any information on the existence of dumping prior to the situation assessed in the present proceeding, this issue is considered irrelevant.

4.5.   Conclusion on injury

| (68) | Between 2002 and the IP, the volume of the dumped imports of the product concerned originating in the Republic of Korea increased significantly by 157 % and their share of the Community market increased by around 13 percentage points. The average prices of dumped imports from the Republic of Korea were consistently lower than those of the Community industry during the period considered. Moreover, during the IP, the prices of the imports from the country concerned significantly undercut those of the Community industry. On a weighted average basis, price undercutting was in the IP between 34 % and 42 %, depending on the exporter concerned, while for some models, price undercutting was in some cases even higher. |
| --- | --- |

(68)

Between 2002 and the IP, the volume of the dumped imports of the product concerned originating in the Republic of Korea increased significantly by 157 % and their share of the Community market increased by around 13 percentage points. The average prices of dumped imports from the Republic of Korea were consistently lower than those of the Community industry during the period considered. Moreover, during the IP, the prices of the imports from the country concerned significantly undercut those of the Community industry. On a weighted average basis, price undercutting was in the IP between 34 % and 42 %, depending on the exporter concerned, while for some models, price undercutting was in some cases even higher.

| (69) | A deterioration in the situation of the Community industry has been found over the period considered. If one leaves aside 2002 which was the year when the Community industry started its operation, most of the injury indicators developed negatively between 2003 and the IP: capacity utilisation declined by 16 percentage points, closing stocks rose by 167 percentage points, the Community lost 61 percentage points of market share, productivity declined by 10 percentage points, unit sales prices declined by 5 percentage points, profitability, return on investment and cash flow deteriorated from an already negative starting point. |
| --- | --- |

(69)

A deterioration in the situation of the Community industry has been found over the period considered. If one leaves aside 2002 which was the year when the Community industry started its operation, most of the injury indicators developed negatively between 2003 and the IP: capacity utilisation declined by 16 percentage points, closing stocks rose by 167 percentage points, the Community lost 61 percentage points of market share, productivity declined by 10 percentage points, unit sales prices declined by 5 percentage points, profitability, return on investment and cash flow deteriorated from an already negative starting point.

| (70) | Some indicators experienced apparent positive developments between 2003 and the IP. Production volume increased by 100 percentage points, the volume of sales of the Community industry to the Community market rose by 31 percentage points and employment rose by 88 percentage points. These developments are considered normal for a production facility that has recently started its operation and that attempts to utilise its fixed capital to the fullest in order to absorb its fixed costs. However, these increases were insufficient to prevent both the loss of market share, as the market grew even faster, and to achieve a reasonable profit margin. |
| --- | --- |

(70)

Some indicators experienced apparent positive developments between 2003 and the IP. Production volume increased by 100 percentage points, the volume of sales of the Community industry to the Community market rose by 31 percentage points and employment rose by 88 percentage points. These developments are considered normal for a production facility that has recently started its operation and that attempts to utilise its fixed capital to the fullest in order to absorb its fixed costs. However, these increases were insufficient to prevent both the loss of market share, as the market grew even faster, and to achieve a reasonable profit margin.

| (71) | In the light of the foregoing, it is provisionally concluded that the Community industry has suffered material injury within the meaning of Article 3 of the basic Regulation. |
| --- | --- |

(71)

In the light of the foregoing, it is provisionally concluded that the Community industry has suffered material injury within the meaning of Article 3 of the basic Regulation.

5.   CAUSATION

5.1.   Introduction

| (72) | In accordance with Article 3(6) and (7) of the basic Regulation, the Commission examined whether dumped imports have caused injury to the Community industry to a degree that enables it to be classified as material. Known factors other than the dumped imports, which could at the same time be injuring the Community industry, were also examined to ensure that possible injury caused by these other factors was not attributed to the dumped imports. |
| --- | --- |

(72)

In accordance with Article 3(6) and (7) of the basic Regulation, the Commission examined whether dumped imports have caused injury to the Community industry to a degree that enables it to be classified as material. Known factors other than the dumped imports, which could at the same time be injuring the Community industry, were also examined to ensure that possible injury caused by these other factors was not attributed to the dumped imports.

5.2.   Effects of the dumped imports

| (73) | The significant increase in the volume of the dumped imports by 157 % between 2002 and the IP, and of its corresponding share of the Community market, i.e. by around 13 percentage points, as well as the undercutting found (between 32 % and 42 % during the IP) coincided with the deterioration of the economic situation of the Community industry. Between 2003 and the IP, capacity utilisation declined by 16 percentage points, closing stocks rose by 167 percentage points, the Community lost 61 percentage points of market share, productivity declined by 10 percentage points and unit sales prices declined by 5 percentage points. This development should be seen against the background of the fast growing Community market during the years 2002–IP. In addition, dumped prices were, on average, below those of the Community industry throughout the period considered and exerted a downward pressure on them. The resulting drop in the Community industry's prices, at a time when the costs of production remained flat triggered the observed drop in profitability, return on investment and cash flow from an already negative starting point. It is therefore provisionally considered that the dumped imports had a significant negative impact on the situation of the Community industry. |
| --- | --- |

(73)

The significant increase in the volume of the dumped imports by 157 % between 2002 and the IP, and of its corresponding share of the Community market, i.e. by around 13 percentage points, as well as the undercutting found (between 32 % and 42 % during the IP) coincided with the deterioration of the economic situation of the Community industry. Between 2003 and the IP, capacity utilisation declined by 16 percentage points, closing stocks rose by 167 percentage points, the Community lost 61 percentage points of market share, productivity declined by 10 percentage points and unit sales prices declined by 5 percentage points. This development should be seen against the background of the fast growing Community market during the years 2002–IP. In addition, dumped prices were, on average, below those of the Community industry throughout the period considered and exerted a downward pressure on them. The resulting drop in the Community industry's prices, at a time when the costs of production remained flat triggered the observed drop in profitability, return on investment and cash flow from an already negative starting point. It is therefore provisionally considered that the dumped imports had a significant negative impact on the situation of the Community industry.

5.3.   Effects of other factors

(a)   Rise in the costs of raw materials

| (74) | One interested party claimed that any injury suffered by the Community industry was linked to the rise observed since 2003 in the price of certain raw materials. |
| --- | --- |

(74)

One interested party claimed that any injury suffered by the Community industry was linked to the rise observed since 2003 in the price of certain raw materials.

| (75) | Indeed, the price of certain raw materials, like steel and polyurethane, rose from 2003 onwards. However, it should be noted that for those raw materials procured from US dollar-based suppliers, this effect has been somewhat muted by the appreciation of the euro vis-à-vis the US dollar observed over the same time. In addition, the key raw materials used in the manufacturing process of the like product are internationally quoted commodities and both the Community industry and its Korean competitors are large groups endowed with a similarly large purchasing power. They therefore procure their raw materials at similar prices. If anything, euro-based producers like the Community industry have, given the movements in the Korean won vis-à-vis the US dollar during the period considered, an advantage over their Korean competitors for the share of the procurement sourced from US dollar-based suppliers. In addition, the investigation evidenced that the Community industry’s unit production costs first decreased sharply in 2003 over 2002, in connection with the growing volume of activity of the newly built plant and then remained flat over the period 2003–IP. The sharp deterioration of profitability observed between 2003 and the IP is therefore not attributable to any slippage of the costs of production, but rather to the decline in sales prices. Indeed, the Community industry’s sales prices dropped by 5 percentage points between 2003 and the IP, as a consequence of price depression and price suppression caused by dumped imports. The rise in raw material prices therefore only played a limited role in the injury suffered by the Community industry, if any, and to an extent that is not such as to break the causal link between the dumped imports and the material injury suffered by the Community industry. |
| --- | --- |

(75)

Indeed, the price of certain raw materials, like steel and polyurethane, rose from 2003 onwards. However, it should be noted that for those raw materials procured from US dollar-based suppliers, this effect has been somewhat muted by the appreciation of the euro vis-à-vis the US dollar observed over the same time. In addition, the key raw materials used in the manufacturing process of the like product are internationally quoted commodities and both the Community industry and its Korean competitors are large groups endowed with a similarly large purchasing power. They therefore procure their raw materials at similar prices. If anything, euro-based producers like the Community industry have, given the movements in the Korean won vis-à-vis the US dollar during the period considered, an advantage over their Korean competitors for the share of the procurement sourced from US dollar-based suppliers. In addition, the investigation evidenced that the Community industry’s unit production costs first decreased sharply in 2003 over 2002, in connection with the growing volume of activity of the newly built plant and then remained flat over the period 2003–IP. The sharp deterioration of profitability observed between 2003 and the IP is therefore not attributable to any slippage of the costs of production, but rather to the decline in sales prices. Indeed, the Community industry’s sales prices dropped by 5 percentage points between 2003 and the IP, as a consequence of price depression and price suppression caused by dumped imports. The rise in raw material prices therefore only played a limited role in the injury suffered by the Community industry, if any, and to an extent that is not such as to break the causal link between the dumped imports and the material injury suffered by the Community industry.

(b)   Rise in intra-group sales

| (76) | One interested party claimed that any injury suffered by the Community industry was linked to the rise observed in the volume of intra-group sales made by the Community industry. |
| --- | --- |

(76)

One interested party claimed that any injury suffered by the Community industry was linked to the rise observed in the volume of intra-group sales made by the Community industry.

| (77) | Like any company which is part of a multinational group, the Community industry has made during the period 2002-IP a number of sales to related parties at a transfer price. In 2002, 2003, 2004 and the IP, these intra-company sales represented respectively only 2 %, 5 %, 15 % and 12 % of the Community industry’s total sales. Moreover, these sales were 100 % destined to non-EU markets. The sales volume analysed under recital (54) above, the sales prices analysed under recital (60) above and the profitability analysed under recital (62) above refer explicitly to sales to unrelated customers of own produced goods. Therefore, any negative price effect arising from the sales to related customers has been carefully eliminated from the injury analysis. The argument is therefore rejected. |
| --- | --- |

(77)

Like any company which is part of a multinational group, the Community industry has made during the period 2002-IP a number of sales to related parties at a transfer price. In 2002, 2003, 2004 and the IP, these intra-company sales represented respectively only 2 %, 5 %, 15 % and 12 % of the Community industry’s total sales. Moreover, these sales were 100 % destined to non-EU markets. The sales volume analysed under recital (54) above, the sales prices analysed under recital (60) above and the profitability analysed under recital (62) above refer explicitly to sales to unrelated customers of own produced goods. Therefore, any negative price effect arising from the sales to related customers has been carefully eliminated from the injury analysis. The argument is therefore rejected.

(c)   Original Equipment Manufacturer (OEM) imports

| (78) | One interested party claimed that OEM imports from the country concerned had caused self-inflicted injury to the Community industry. |
| --- | --- |

(78)

One interested party claimed that OEM imports from the country concerned had caused self-inflicted injury to the Community industry.

| (79) | Contrary to the allegation of the above party, the Community industry did not import the product concerned from the country concerned during the period 2002–IP, be it under an OEM supply agreement or any other channel. The argument is therefore rejected. |
| --- | --- |

(79)

Contrary to the allegation of the above party, the Community industry did not import the product concerned from the country concerned during the period 2002–IP, be it under an OEM supply agreement or any other channel. The argument is therefore rejected.

(d)   Imports from other countries

| (80) | As indicated under recital (42) above, the Community market is supplied by three origins only: Korean exporting producers, the Community industry and the USA. The volume of total imports (including imports by the Community industry) originating in the USA declined by 49 % in 2003, stayed at this level in 2004 and increased slightly by 4 percentage points in the IP. The corresponding market share held by imports from the USA declined by 66 % in 2003, by a further 9 percentage points in 2004 and stayed at this level in the IP. During the IP, the market share held by US imports (including imports by the Community industry) ranged between 5 and 10 %. These volume and market share developments are influenced by the two following reasons: the complainant’s procurement of the like product from its parent company in the USA during the start-up phase and the effects of increasing volumes of the dumped imports from the Korean producers on the Community market. |
| --- | --- |

(80)

As indicated under recital (42) above, the Community market is supplied by three origins only: Korean exporting producers, the Community industry and the USA. The volume of total imports (including imports by the Community industry) originating in the USA declined by 49 % in 2003, stayed at this level in 2004 and increased slightly by 4 percentage points in the IP. The corresponding market share held by imports from the USA declined by 66 % in 2003, by a further 9 percentage points in 2004 and stayed at this level in the IP. During the IP, the market share held by US imports (including imports by the Community industry) ranged between 5 and 10 %. These volume and market share developments are influenced by the two following reasons: the complainant’s procurement of the like product from its parent company in the USA during the start-up phase and the effects of increasing volumes of the dumped imports from the Korean producers on the Community market.

| (81) | The output of the Community industry gathered pace in 2002 and 2003. The complainant therefore drastically reduced its procurement from its mother company in the USA. In 2002, the Community industry procured 62 % of its total sales from its US parent company. This ratio fell sharply to 3 % in 2003 and was 6 % in 2004 and 8 % in the IP. The Community industry’s imports from its US parent company represented around 57 % of the total statistical import volumes originating in the USA in 2002, 6 % in 2003, 19 % in 2004 and 23 % in the IP. It is noted that the complainants’ imports from the USA were, during the period 2003–IP, limited in volume and that, as shown in the table below, prices of total imports from the US (complainant’s own imports and other imports) were made at prices above both Korean and Community industry’s prices. |
| --- | --- |

(81)

The output of the Community industry gathered pace in 2002 and 2003. The complainant therefore drastically reduced its procurement from its mother company in the USA. In 2002, the Community industry procured 62 % of its total sales from its US parent company. This ratio fell sharply to 3 % in 2003 and was 6 % in 2004 and 8 % in the IP. The Community industry’s imports from its US parent company represented around 57 % of the total statistical import volumes originating in the USA in 2002, 6 % in 2003, 19 % in 2004 and 23 % in the IP. It is noted that the complainants’ imports from the USA were, during the period 2003–IP, limited in volume and that, as shown in the table below, prices of total imports from the US (complainant’s own imports and other imports) were made at prices above both Korean and Community industry’s prices.

| (82) | Given the declining volume, market share and the relatively high prices, it is concluded that imports from the USA, be it by Whirlpool itself or by an independent competitor, did not cause any injury to the Community industry. | 2002 | 2003 | 2004 | IP |
| --- | --- | --- | --- | --- | --- |
| Volume of imports from the USA (pieces) | cannot be disclosed |
| Index (2002 = 100) | 100 | 51 | 51 | 54 |
| Market share of imports from the USA | cannot be disclosed |
| Index (2002 = 100) | 100 | 34 | 25 | 25 |
| Prices of imports from the USA (EUR/piece) | 1 157 | 1 138 | 1 090 | 1 012 |
| Index (2002 = 100) | 100 | 98 | 94 | 87 |

(82)

Given the declining volume, market share and the relatively high prices, it is concluded that imports from the USA, be it by Whirlpool itself or by an independent competitor, did not cause any injury to the Community industry.

2002

2003

2004

IP

Volume of imports from the USA (pieces)

cannot be disclosed

Index (2002 = 100)

Index (2002 = 100)

100

100

51

51

51

51

54

54

Market share of imports from the USA

cannot be disclosed

Index (2002 = 100)

Index (2002 = 100)

100

100

34

34

25

25

25

25

Prices of imports from the USA (EUR/piece)

1 157

1 138

1 090

1 012

Index (2002 = 100)

Index (2002 = 100)

100

100

98

98

94

94

87

87

(e)   Consequence of start-up operations

| (83) | One interested party claimed that any injury felt by the Community industry was due to the start-up operations of the newly built production facility. |
| --- | --- |

(83)

One interested party claimed that any injury felt by the Community industry was due to the start-up operations of the newly built production facility.

| (84) | The said interested party further alleged that the first like products manufactured in the facility of the Community industry reached the market some time in April 2003. This is incorrect. The facility started its operation in April 2002 and these products were sold already in 2002. As shown under recital (62) above, the profitability of the Community industry was indeed highly negative in the year of the start-up (2002). However, already in 2003, profitability improved markedly and almost reached a break-even level. In 2004 and the IP, profitability deteriorated again. The argument of this interested party bears no explanation as to the reasons why after, indeed, a foreseeably difficult start-up period in 2002, profitability improved markedly (2003) before deteriorating (2004 and IP). The argument is therefore rejected. |
| --- | --- |

(84)

The said interested party further alleged that the first like products manufactured in the facility of the Community industry reached the market some time in April 2003. This is incorrect. The facility started its operation in April 2002 and these products were sold already in 2002. As shown under recital (62) above, the profitability of the Community industry was indeed highly negative in the year of the start-up (2002). However, already in 2003, profitability improved markedly and almost reached a break-even level. In 2004 and the IP, profitability deteriorated again. The argument of this interested party bears no explanation as to the reasons why after, indeed, a foreseeably difficult start-up period in 2002, profitability improved markedly (2003) before deteriorating (2004 and IP). The argument is therefore rejected.

(f)   Effects of sales of other types of refrigerators

| (85) | One interested party claimed that when assessing the injurious situation of the Community industry, attention should be paid also to the effect of sales of other types of refrigerators, as consumers seeking refrigerators have a choice among all types of refrigerators in making their buying decisions. |
| --- | --- |

(85)

One interested party claimed that when assessing the injurious situation of the Community industry, attention should be paid also to the effect of sales of other types of refrigerators, as consumers seeking refrigerators have a choice among all types of refrigerators in making their buying decisions.

| (86) | It has been determined under recitals (9) to (17) above that the Community market for the product concerned and the like product constitute a market which is autonomous and distinct from the markets of other refrigerators. The issue of the competition between this market and the market of any other product is therefore irrelevant and the argument is rejected. In any event, the analysis of the situation of the Community industry in recitals (48) to (71) above has been made solely on the basis of data relating to side-by-side refrigerators. |
| --- | --- |

(86)

It has been determined under recitals (9) to (17) above that the Community market for the product concerned and the like product constitute a market which is autonomous and distinct from the markets of other refrigerators. The issue of the competition between this market and the market of any other product is therefore irrelevant and the argument is rejected. In any event, the analysis of the situation of the Community industry in recitals (48) to (71) above has been made solely on the basis of data relating to side-by-side refrigerators.

(g)   Self-inflicted injury due to erroneous design and marketing decisions

| (87) | One interested party claimed that the injury suffered by the Community industry was not caused by dumping but was rather self-inflicted due to a number of erroneous strategic decisions. In detail, this party mentioned the allegedly wrong door design (rounded doors), expensive outer materials (i.e. stainless steel) and longer product renewal cycle. |
| --- | --- |

(87)

One interested party claimed that the injury suffered by the Community industry was not caused by dumping but was rather self-inflicted due to a number of erroneous strategic decisions. In detail, this party mentioned the allegedly wrong door design (rounded doors), expensive outer materials (i.e. stainless steel) and longer product renewal cycle.

| (88) | As to the first point, it should be noted that the Community industry has always produced and offered models with both rounded and flat doors. Further, the Community industry’s sales figures and market studies show a clear preference of consumers for rounded door models, contrary to the allegations of the above party. Finally, it is noted that the above party itself has recently introduced a rounded door range, a decision at odds with its above allegation. |
| --- | --- |

(88)

As to the first point, it should be noted that the Community industry has always produced and offered models with both rounded and flat doors. Further, the Community industry’s sales figures and market studies show a clear preference of consumers for rounded door models, contrary to the allegations of the above party. Finally, it is noted that the above party itself has recently introduced a rounded door range, a decision at odds with its above allegation.

| (89) | As to the second point, the investigation found that the Community industry does not only use stainless steel for the outer finishing of the like product, but also other cheaper materials. In any event, a comparison of the cost of the stainless steel used by the Community industry with the cost of its nearest substitute as used by Korean exporting producers evidenced that the difference would amount to around 1 % of the total costs of production. Against this background, the cost of the stainless steel outer finishing cannot be the only cause for the injury suffered by the Community industry. |
| --- | --- |

(89)

As to the second point, the investigation found that the Community industry does not only use stainless steel for the outer finishing of the like product, but also other cheaper materials. In any event, a comparison of the cost of the stainless steel used by the Community industry with the cost of its nearest substitute as used by Korean exporting producers evidenced that the difference would amount to around 1 % of the total costs of production. Against this background, the cost of the stainless steel outer finishing cannot be the only cause for the injury suffered by the Community industry.

| (90) | As to the third point, the Community industry implements a product renewal cycle of one to two years, while the above interested party changes models annually. Admittedly, the product renewal cycle of the Community industry is slightly less rapid than that of the above interested party, but it is in line with that of US producers. The above interested party has not provided any material evidence as to why and how a shorter product renewal cycle of one year instead of two years would automatically trigger higher sales volumes and higher profits. Instead, the Community industry has provided evidence that trade partners and retailers do not favour too frequent renewals of the product range, due to the high costs of display and catalogues involved. |
| --- | --- |

(90)

As to the third point, the Community industry implements a product renewal cycle of one to two years, while the above interested party changes models annually. Admittedly, the product renewal cycle of the Community industry is slightly less rapid than that of the above interested party, but it is in line with that of US producers. The above interested party has not provided any material evidence as to why and how a shorter product renewal cycle of one year instead of two years would automatically trigger higher sales volumes and higher profits. Instead, the Community industry has provided evidence that trade partners and retailers do not favour too frequent renewals of the product range, due to the high costs of display and catalogues involved.

| (91) | The issue of allegedly erroneous design and marketing decisions therefore only played a marginal role, if any, in the injury suffered by the Community industry, to an extent that is not such as to break the causal link. |
| --- | --- |

(91)

The issue of allegedly erroneous design and marketing decisions therefore only played a marginal role, if any, in the injury suffered by the Community industry, to an extent that is not such as to break the causal link.

(h)   Competition in different product ranges

| (92) | One interested party claimed that (i) it was not competing with the Community industry in the same product range; (ii) drawing conclusions from a comparison of average prices was misleading; and (iii) as a consequence, it could not have caused injury to the Community industry. |
| --- | --- |

(92)

One interested party claimed that (i) it was not competing with the Community industry in the same product range; (ii) drawing conclusions from a comparison of average prices was misleading; and (iii) as a consequence, it could not have caused injury to the Community industry.

| (93) | The homogeneity of the scope of the product concerned and of the like product has been defined under recitals (9) to (17) above. Obviously, each market so defined encompasses a number of types, models or qualities. However, these various models share the same basic physical, technical and end-use characteristics and no clear dividing line can be drawn between one segment and the other, as overlaps exist between adjoining segments. Undercutting calculations have been made on a model basis (see recital (47) above), and not simply on an average price basis. Undercutting of the Community industry’s prices by the export prices of this exporting producer has been evidenced for virtually all the models compared. The argument is therefore rejected. |
| --- | --- |

(93)

The homogeneity of the scope of the product concerned and of the like product has been defined under recitals (9) to (17) above. Obviously, each market so defined encompasses a number of types, models or qualities. However, these various models share the same basic physical, technical and end-use characteristics and no clear dividing line can be drawn between one segment and the other, as overlaps exist between adjoining segments. Undercutting calculations have been made on a model basis (see recital (47) above), and not simply on an average price basis. Undercutting of the Community industry’s prices by the export prices of this exporting producer has been evidenced for virtually all the models compared. The argument is therefore rejected.

5.4.   Conclusion on causation

| (94) | In conclusion, the above analysis has demonstrated that there was a substantial increase in volume and market share of the imports originating in the country concerned between 2002 and the IP, together with a considerable decrease in their sales prices and a high level of price undercutting during the IP. This increase in market share of the low-priced Korean imports coincided with a decline in the Community industry’s market share and in unit sales price, and with the drop in profitability, in return on investments and cash-flow from operating activities. |
| --- | --- |

(94)

In conclusion, the above analysis has demonstrated that there was a substantial increase in volume and market share of the imports originating in the country concerned between 2002 and the IP, together with a considerable decrease in their sales prices and a high level of price undercutting during the IP. This increase in market share of the low-priced Korean imports coincided with a decline in the Community industry’s market share and in unit sales price, and with the drop in profitability, in return on investments and cash-flow from operating activities.

| (95) | On the other hand, the examination of the other factors which could have injured the Community industry revealed that none of these could have had a significant negative impact. |
| --- | --- |

(95)

On the other hand, the examination of the other factors which could have injured the Community industry revealed that none of these could have had a significant negative impact.

| (96) | Based on the above analysis which has properly distinguished and separated the effects of all known factors on the situation of the Community industry from the injurious effects of the dumped imports, it is provisionally concluded that the dumped imports originating in the country concerned have caused material injury to the Community industry within the meaning of Article 3(6) of the basic Regulation. |
| --- | --- |

(96)

Based on the above analysis which has properly distinguished and separated the effects of all known factors on the situation of the Community industry from the injurious effects of the dumped imports, it is provisionally concluded that the dumped imports originating in the country concerned have caused material injury to the Community industry within the meaning of Article 3(6) of the basic Regulation.

6.   COMMUNITY INTEREST

| (97) | The Commission examined whether, despite the conclusions on dumping, injury and causation, compelling reasons existed which would lead to the conclusion that it is not in the Community interest to adopt measures in this particular case. For this purpose, and pursuant to Article 21(1) of the basic Regulation, the Commission considered the likely impact of measures for all parties concerned. |
| --- | --- |

(97)

The Commission examined whether, despite the conclusions on dumping, injury and causation, compelling reasons existed which would lead to the conclusion that it is not in the Community interest to adopt measures in this particular case. For this purpose, and pursuant to Article 21(1) of the basic Regulation, the Commission considered the likely impact of measures for all parties concerned.

6.1.   Interest of the Community industry

| (98) | As indicated under recital (39) above, the Community industry is composed of one company, with one production facility in Italy, and employs in the range of 300-500 persons directly involved in the production, sales and administration of the like product. If measures are imposed, it is expected that the sales volumes of the Community industry on the Community market would rise. It is therefore expected that the increase in production, the rise in capacity utilisation and productivity and the resulting likely decrease in unit costs, will allow the Community industry to improve its financial situation and, at the same time, to offer more competitive prices. This would reduce the substantial gap found between Community industry’s prices and Korean producers’ prices. |
| --- | --- |

(98)

As indicated under recital (39) above, the Community industry is composed of one company, with one production facility in Italy, and employs in the range of 300-500 persons directly involved in the production, sales and administration of the like product. If measures are imposed, it is expected that the sales volumes of the Community industry on the Community market would rise. It is therefore expected that the increase in production, the rise in capacity utilisation and productivity and the resulting likely decrease in unit costs, will allow the Community industry to improve its financial situation and, at the same time, to offer more competitive prices. This would reduce the substantial gap found between Community industry’s prices and Korean producers’ prices.

| (99) | On the other hand, should anti-dumping measures not be imposed, it is likely that the negative trend of the Community industry will continue. The Community industry will likely continue to lose market shares and to experience a deterioration of its profitability. This will in all likelihood lead to cuts in production and investments, closure of certain production capacities and further job reduction in the Community. |
| --- | --- |

(99)

On the other hand, should anti-dumping measures not be imposed, it is likely that the negative trend of the Community industry will continue. The Community industry will likely continue to lose market shares and to experience a deterioration of its profitability. This will in all likelihood lead to cuts in production and investments, closure of certain production capacities and further job reduction in the Community.

| (100) | In conclusion, the imposition of anti-dumping measures would allow the Community industry to recover from the effects of injurious dumping found. |
| --- | --- |

(100)

In conclusion, the imposition of anti-dumping measures would allow the Community industry to recover from the effects of injurious dumping found.

6.2.   Interest of suppliers of the Community industry

| (101) | Two suppliers of the Community industry, supplying two of the principal raw materials consumed by the Community industry, co-operated in the proceeding and expressed their support for the complaint lodged by the Community industry. These two suppliers are representative as the above two raw materials accounted for around 30 % of the Community industry’s total procurement of raw materials. The supplies of raw materials and components to the Community industry with respect to the manufacturing of the like product represented on average around 2 % of these two companies’ respective total turnover and 22 direct jobs. |
| --- | --- |

(101)

Two suppliers of the Community industry, supplying two of the principal raw materials consumed by the Community industry, co-operated in the proceeding and expressed their support for the complaint lodged by the Community industry. These two suppliers are representative as the above two raw materials accounted for around 30 % of the Community industry’s total procurement of raw materials. The supplies of raw materials and components to the Community industry with respect to the manufacturing of the like product represented on average around 2 % of these two companies’ respective total turnover and 22 direct jobs.

| (102) | The imposition of measures would allow the co-operating suppliers to increase their turnover, their profitability and their employment. |
| --- | --- |

(102)

The imposition of measures would allow the co-operating suppliers to increase their turnover, their profitability and their employment.

6.3.   Interest of the white goods industry

| (103) | Various industrial federations (Conseil Européen de la construction d’appareils domestiques-CECED and Associazione Nazionale Industrie Apparecchi Domestici e Professionali-ANIE) have made written submissions in favour of anti-dumping measures in this particular proceeding. |
| --- | --- |

(103)

Various industrial federations (Conseil Européen de la construction d’appareils domestiques-CECED and Associazione Nazionale Industrie Apparecchi Domestici e Professionali-ANIE) have made written submissions in favour of anti-dumping measures in this particular proceeding.

| (104) | Likewise, in order to raise public awareness on the price-depressive effect brought about by dumped imports from the Republic of Korea, major manufacturers of white goods (Electrolux, Bosch-Siemens), although not manufacturers of the like product in the Community, expressed their support for the complaint lodged by the complainant. One of these companies indicated that it had seriously considered starting its own production of the like product in the Community but this plan had been put on hold because of dumped imports originating in the Republic of Korea. It should be noted that both Electrolux and Bosch-Siemens imported the like product from the USA during the IP and were therefore also directly affected by the unfair trade practice of the Korean exporting producers. In each of the above two companies, around 30 to 50 jobs in the Community can be allocated to the import and resale activity of the like product. |
| --- | --- |

(104)

Likewise, in order to raise public awareness on the price-depressive effect brought about by dumped imports from the Republic of Korea, major manufacturers of white goods (Electrolux, Bosch-Siemens), although not manufacturers of the like product in the Community, expressed their support for the complaint lodged by the complainant. One of these companies indicated that it had seriously considered starting its own production of the like product in the Community but this plan had been put on hold because of dumped imports originating in the Republic of Korea. It should be noted that both Electrolux and Bosch-Siemens imported the like product from the USA during the IP and were therefore also directly affected by the unfair trade practice of the Korean exporting producers. In each of the above two companies, around 30 to 50 jobs in the Community can be allocated to the import and resale activity of the like product.

| (105) | The white goods industry at large would therefore support the imposition of anti-dumping measures. |
| --- | --- |

(105)

The white goods industry at large would therefore support the imposition of anti-dumping measures.

6.4.   Interest of related importers in the Community

| (106) | Most of the imports of the product concerned are made through related importers, which are subsidiaries of the three co-operating Korean producers. These related importers oppose any anti-dumping measure. During the IP, the 26 co-operating related importers imported around 96 % of the Community’s total import volume of the product concerned originating in the country concerned. The activity of import and resale of the product concerned accounts for around 4 % of these companies’ total turnover. In terms of workforce, from a total of around 4 000 persons employed by these related importers, 170 persons are directly involved in the trading and resale of the product concerned in the Community. |
| --- | --- |

(106)

Most of the imports of the product concerned are made through related importers, which are subsidiaries of the three co-operating Korean producers. These related importers oppose any anti-dumping measure. During the IP, the 26 co-operating related importers imported around 96 % of the Community’s total import volume of the product concerned originating in the country concerned. The activity of import and resale of the product concerned accounts for around 4 % of these companies’ total turnover. In terms of workforce, from a total of around 4 000 persons employed by these related importers, 170 persons are directly involved in the trading and resale of the product concerned in the Community.

| (107) | As regards the possible effect of measures on these importers, it should be noted firstly that the investigation has evidenced that the market of the product concerned and like product in the Community is a fast growing market. In addition, the level of duties proposed is moderate, and, as the measures are based on dumping margins, they will not fully close the substantial gap observed between Korean export prices and Community industry’s prices. In other words, even when corrected for the dumping found, Korean export prices would still undercut current Community industry’s prices. As a consequence of the foregoing considerations, it is not certain that the measures will trigger a decline in the sales volume of the Korean exporting producers. To the contrary, in view of the fast growing market, one could likely observe a levelling off of that sales volume, which should not significantly affect the current situation of the related importers. Moreover, as pointed out in the previous recital, the import of the product concerned in any event only represents around 4 % of these companies’ turnover. |
| --- | --- |

(107)

As regards the possible effect of measures on these importers, it should be noted firstly that the investigation has evidenced that the market of the product concerned and like product in the Community is a fast growing market. In addition, the level of duties proposed is moderate, and, as the measures are based on dumping margins, they will not fully close the substantial gap observed between Korean export prices and Community industry’s prices. In other words, even when corrected for the dumping found, Korean export prices would still undercut current Community industry’s prices. As a consequence of the foregoing considerations, it is not certain that the measures will trigger a decline in the sales volume of the Korean exporting producers. To the contrary, in view of the fast growing market, one could likely observe a levelling off of that sales volume, which should not significantly affect the current situation of the related importers. Moreover, as pointed out in the previous recital, the import of the product concerned in any event only represents around 4 % of these companies’ turnover.

| (108) | For these reasons, it is provisionally concluded that the imposition of anti-dumping measures is unlikely to have a serious negative effect on the situation of related importers in the Community. |
| --- | --- |

(108)

For these reasons, it is provisionally concluded that the imposition of anti-dumping measures is unlikely to have a serious negative effect on the situation of related importers in the Community.

6.5.   Interest of unrelated importers in the Community

| (109) | During the IP, the only co-operating unrelated importer imported around 2 % of the Community’s total import volume of the product concerned originating in the country concerned. This importer therefore imported around 50 % of the volumes that are not imported via related importers from the Republic of Korea. It is deemed representative of the situation of unrelated importers. This co-operating party, which imported the product concerned under an OEM supply agreement from one of the co-operating exporting producers in the Republic of Korea for resale inside the Community under its own brand names, indicated that it wanted to stay neutral with regard to the complaint lodged by the complainant, and that it might consider starting its own production of the like product in the Community, depending upon the results of the present proceeding. The activity of resale of the product concerned accounts for a negligible amount of its total company turnover. In terms of workforce, less than 10 persons are directly involved in the trading and resale of the product concerned. |
| --- | --- |

(109)

During the IP, the only co-operating unrelated importer imported around 2 % of the Community’s total import volume of the product concerned originating in the country concerned. This importer therefore imported around 50 % of the volumes that are not imported via related importers from the Republic of Korea. It is deemed representative of the situation of unrelated importers. This co-operating party, which imported the product concerned under an OEM supply agreement from one of the co-operating exporting producers in the Republic of Korea for resale inside the Community under its own brand names, indicated that it wanted to stay neutral with regard to the complaint lodged by the complainant, and that it might consider starting its own production of the like product in the Community, depending upon the results of the present proceeding. The activity of resale of the product concerned accounts for a negligible amount of its total company turnover. In terms of workforce, less than 10 persons are directly involved in the trading and resale of the product concerned.

| (110) | As seen under recital (107) above, anti-dumping measures in the present case may not lead to a decline in the sales volume of the product concerned, but rather in a levelling off of that import volume. Given the undetermined position of this unrelated importer in the present proceeding and the negligible share of its turnover concerned by the activity of resale in the Community, it is provisionally concluded that the imposition of anti-dumping measures is likely to have a marginal effect on the situation of unrelated importers in the Community. |
| --- | --- |

(110)

As seen under recital (107) above, anti-dumping measures in the present case may not lead to a decline in the sales volume of the product concerned, but rather in a levelling off of that import volume. Given the undetermined position of this unrelated importer in the present proceeding and the negligible share of its turnover concerned by the activity of resale in the Community, it is provisionally concluded that the imposition of anti-dumping measures is likely to have a marginal effect on the situation of unrelated importers in the Community.

6.6.   Interest of the retailers and of consumers

| (111) | Given the specificity of the market at stake in this proceeding, co-operation was sought from retailers and from consumer associations. However, very little co-operation was obtained. Only two retailers offered co-operation. Neither of them explicitly opposed the complaint. During the IP, the sales volume of side-by-side refrigerators by the two co-operating retailers amounted to around 4 % of the total Community consumption. The turnover generated by the sales of the product concerned and of the like product represented 0,1 % of the total turnover of these retailers and yielded a gross margin of around 10 % over net sales during the IP. Based on relative turnovers, the number of jobs allocated to the product concerned were estimated to around 50 during the IP. |
| --- | --- |

(111)

Given the specificity of the market at stake in this proceeding, co-operation was sought from retailers and from consumer associations. However, very little co-operation was obtained. Only two retailers offered co-operation. Neither of them explicitly opposed the complaint. During the IP, the sales volume of side-by-side refrigerators by the two co-operating retailers amounted to around 4 % of the total Community consumption. The turnover generated by the sales of the product concerned and of the like product represented 0,1 % of the total turnover of these retailers and yielded a gross margin of around 10 % over net sales during the IP. Based on relative turnovers, the number of jobs allocated to the product concerned were estimated to around 50 during the IP.

| (112) | As developed under recital (107) above, anti-dumping measures in this case may trigger a levelling off of sales volume originating in the country concerned. The price effect of such scenario would likely be as follows. Korean export cif prices at Community frontier would be liable to a duty ranging between 4,4 % and 14,3 %. Between this level of delivery and the final consumer price, various costs including, inter alia, the delivery costs to and the mark up of the importers and the delivery costs to and the mark up of the retailers, will have to be added. All in all, these additions may result in a final consumer price that is around 100 % higher than the above cif price. As a result, the impact of the anti-dumping duty in the final consumer price would, in percentage terms, be approximately half of the rate of the anti-dumping duty. Given the dominant market share held by Korean exporting producers, the benchmark selling price on the Community market is and will in all likelihood continue to be set by them. As discussed under recitals (98) and (107) above, the Community industry might be in a position to price more competitively, as a consequence of the imposition of the measures. However, considering its relatively small market share, this will have little effect on the average Community consumer price of this particular product. The price of imports from the USA is unlikely to be affected by the measures proposed. All in all, a moderate price increase in the consumer price of maximum 2 % to 7 % could be observed as a consequence of the imposition of the measures. |
| --- | --- |

(112)

As developed under recital (107) above, anti-dumping measures in this case may trigger a levelling off of sales volume originating in the country concerned. The price effect of such scenario would likely be as follows. Korean export cif prices at Community frontier would be liable to a duty ranging between 4,4 % and 14,3 %. Between this level of delivery and the final consumer price, various costs including, inter alia, the delivery costs to and the mark up of the importers and the delivery costs to and the mark up of the retailers, will have to be added. All in all, these additions may result in a final consumer price that is around 100 % higher than the above cif price. As a result, the impact of the anti-dumping duty in the final consumer price would, in percentage terms, be approximately half of the rate of the anti-dumping duty. Given the dominant market share held by Korean exporting producers, the benchmark selling price on the Community market is and will in all likelihood continue to be set by them. As discussed under recitals (98) and (107) above, the Community industry might be in a position to price more competitively, as a consequence of the imposition of the measures. However, considering its relatively small market share, this will have little effect on the average Community consumer price of this particular product. The price of imports from the USA is unlikely to be affected by the measures proposed. All in all, a moderate price increase in the consumer price of maximum 2 % to 7 % could be observed as a consequence of the imposition of the measures.

inter alia

| (113) | In light of the above and given the overall low degree of co-operation, the situation of retailers and of consumers in the Community is therefore unlikely to be substantially affected by the proposed measures. |
| --- | --- |

(113)

In light of the above and given the overall low degree of co-operation, the situation of retailers and of consumers in the Community is therefore unlikely to be substantially affected by the proposed measures.

6.7.   Conclusion on Community interest

| (114) | The effects of the imposition of measures can be expected to afford the Community industry the opportunity to regain lost sales and market shares and to improve its profitability. In view of the deteriorating situation of the Community industry, there is a real risk that in the absence of measures, the sole Community producer may close down its production facility and lay-off its workforce. The suppliers of the Community industry would also benefit from the imposition of measures. The white goods industry at large supports measures. Co-operating unrelated importers and retailers stayed neutral in this proceeding. Whilst some limited negative effects may occur in the form of a levelling off in the volumes imported, the extent of these is far outweighed by the expected beneficial outcome for the Community industry. In light of the above, it is provisionally concluded that no compelling reasons exist for not imposing measures in the present case and that the application of measures would be in the interest of the Community. |
| --- | --- |

(114)

The effects of the imposition of measures can be expected to afford the Community industry the opportunity to regain lost sales and market shares and to improve its profitability. In view of the deteriorating situation of the Community industry, there is a real risk that in the absence of measures, the sole Community producer may close down its production facility and lay-off its workforce. The suppliers of the Community industry would also benefit from the imposition of measures. The white goods industry at large supports measures. Co-operating unrelated importers and retailers stayed neutral in this proceeding. Whilst some limited negative effects may occur in the form of a levelling off in the volumes imported, the extent of these is far outweighed by the expected beneficial outcome for the Community industry. In light of the above, it is provisionally concluded that no compelling reasons exist for not imposing measures in the present case and that the application of measures would be in the interest of the Community.

7.   PROPOSAL FOR PROVISIONAL ANTI-DUMPING MEASURES

| (115) | In view of the conclusions reached with regard to dumping, injury, causation and Community interest, provisional measures should be imposed in order to prevent further injury to the Community industry by the dumped imports. |
| --- | --- |

(115)

In view of the conclusions reached with regard to dumping, injury, causation and Community interest, provisional measures should be imposed in order to prevent further injury to the Community industry by the dumped imports.

7.1.   Injury elimination level

| (116) | The level of the provisional anti-dumping measures should be sufficient to eliminate the injury to the Community industry caused by the dumped imports, without exceeding the dumping margins found. When calculating the amount of duty necessary to remove the effects of the injurious dumping, it was considered that any measures should allow the Community industry to obtain a profit before tax that could be reasonably achieved under normal conditions of competition, i.e. in the absence of dumped imports. |
| --- | --- |

(116)

The level of the provisional anti-dumping measures should be sufficient to eliminate the injury to the Community industry caused by the dumped imports, without exceeding the dumping margins found. When calculating the amount of duty necessary to remove the effects of the injurious dumping, it was considered that any measures should allow the Community industry to obtain a profit before tax that could be reasonably achieved under normal conditions of competition, i.e. in the absence of dumped imports.

| (117) | On the basis of the information available, it was preliminarily found that a profit margin of 6 % of turnover could be regarded as an appropriate level that the Community industry could be expected to obtain in the absence of injurious dumping. The investigation found that Whirlpool achieved approximately this profit margin in the USA for sales of side-by-side refrigerators and also achieved this return on other comparable segments in the Community not faced with dumped imports. |
| --- | --- |

(117)

On the basis of the information available, it was preliminarily found that a profit margin of 6 % of turnover could be regarded as an appropriate level that the Community industry could be expected to obtain in the absence of injurious dumping. The investigation found that Whirlpool achieved approximately this profit margin in the USA for sales of side-by-side refrigerators and also achieved this return on other comparable segments in the Community not faced with dumped imports.

| (118) | The necessary price increase was then determined on the basis of a comparison, on a transaction by transaction basis, of the weighted average import price, as established for the price undercutting calculations, with the non-injurious price of the like product sold by the Community industry on the Community market. The non-injurious price has been obtained by adjusting the sales price of the Community industry in order to reflect the above mentioned profit margin. Any difference resulting from this comparison was then expressed as a percentage of the total cif import value. |
| --- | --- |

(118)

The necessary price increase was then determined on the basis of a comparison, on a transaction by transaction basis, of the weighted average import price, as established for the price undercutting calculations, with the non-injurious price of the like product sold by the Community industry on the Community market. The non-injurious price has been obtained by adjusting the sales price of the Community industry in order to reflect the above mentioned profit margin. Any difference resulting from this comparison was then expressed as a percentage of the total cif import value.

| (119) | The above-mentioned price comparison showed the following injury margins:






  Daewoo Electronics Corporation | 98,5  % |
| --- | --- | --- |
| LG Electronics Corporation | 74,8  % |
| Samsung Electronics Corporation | 66,3  % |

(119)

The above-mentioned price comparison showed the following injury margins:

Daewoo Electronics Corporation

98,5  %

LG Electronics Corporation

74,8  %

Samsung Electronics Corporation

66,3  %

| (120) | As the injury elimination level was higher than the dumping margin established, the provisional measures should be based on the latter. |
| --- | --- |

(120)

As the injury elimination level was higher than the dumping margin established, the provisional measures should be based on the latter.

7.2.   Provisional measures

| (121) | In the light of the foregoing and pursuant to Article 7(2) of the basic Regulation, it is considered that a provisional anti-dumping duty should be imposed at the level of the lowest of the dumping and injury margins found, in accordance with the lesser duty rule. |
| --- | --- |

(121)

In the light of the foregoing and pursuant to Article 7(2) of the basic Regulation, it is considered that a provisional anti-dumping duty should be imposed at the level of the lowest of the dumping and injury margins found, in accordance with the lesser duty rule.

| (122) | Consequently, the provisional anti-dumping duties should be as follows:








  Company | Injury elimination margin | Dumping margin | Proposed anti-dumping duty |
| --- | --- | --- | --- | --- |
| Daewoo Electronics Corporation | 98,5  % | 9,1  % | 9,1  % |
| LG Electronics Corporation | 74,8  % | 14,3  % | 14,3  % |
| Samsung Electronics Corporation | 66,3  % | 4,4  % | 4,4  % |
| All other companies | 98,5  % | 14,3  % | 14,3  % |

(122)

Consequently, the provisional anti-dumping duties should be as follows:

Company

Injury elimination margin

Dumping margin

Proposed anti-dumping duty

Daewoo Electronics Corporation

98,5  %

9,1  %

9,1  %

LG Electronics Corporation

74,8  %

14,3  %

14,3  %

Samsung Electronics Corporation

66,3  %

4,4  %

4,4  %

All other companies

98,5  %

14,3  %

14,3  %

| (123) | The individual anti-dumping duty rates for the companies specified in this Regulation were established on the basis of the findings of the present investigation. Therefore, they reflect the situation found during that investigation with respect to these companies. These duty rates (as opposed to the countrywide duty applicable to ‘all other companies’) are thus exclusively applicable to imports of products originating in the Republic of Korea and produced by these companies and thus by the specific legal entities mentioned. Imported products produced by any other company not specifically mentioned in the operative part of this Regulation with its name and address, including entities related to those specifically mentioned, cannot benefit from these rates and shall be subject to the countrywide duty rate. |
| --- | --- |

(123)

The individual anti-dumping duty rates for the companies specified in this Regulation were established on the basis of the findings of the present investigation. Therefore, they reflect the situation found during that investigation with respect to these companies. These duty rates (as opposed to the countrywide duty applicable to ‘all other companies’) are thus exclusively applicable to imports of products originating in the Republic of Korea and produced by these companies and thus by the specific legal entities mentioned. Imported products produced by any other company not specifically mentioned in the operative part of this Regulation with its name and address, including entities related to those specifically mentioned, cannot benefit from these rates and shall be subject to the countrywide duty rate.

| (124) | Any claim requesting the application of an individual company anti-dumping duty rate (e.g. following a change in the name of the entity or following the setting up of new production or sales entities) should be addressed to the Commission forthwith with all relevant information, in particular any modification in the company’s activities linked to production, domestic and export sales associated with, for example, the name change or that change in the production and sales entities. If appropriate, the Regulation will accordingly be amended by updating the list of companies benefiting from individual duty rates. |
| --- | --- |

(124)

Any claim requesting the application of an individual company anti-dumping duty rate (e.g. following a change in the name of the entity or following the setting up of new production or sales entities) should be addressed to the Commission forthwith with all relevant information, in particular any modification in the company’s activities linked to production, domestic and export sales associated with, for example, the name change or that change in the production and sales entities. If appropriate, the Regulation will accordingly be amended by updating the list of companies benefiting from individual duty rates.

7.3.   Final Provision

| (125) | In the interest of sound administration, a period should be fixed within which the interested parties which made themselves known within the time-limit specified in the notice of initiation may make their views known in writing and request a hearing. Furthermore, it should be stated that the findings concerning the imposition of duties made for the purposes of this Regulation are provisional and may have to be reconsidered for the purpose of any definitive measures, |
| --- | --- |

(125)

In the interest of sound administration, a period should be fixed within which the interested parties which made themselves known within the time-limit specified in the notice of initiation may make their views known in writing and request a hearing. Furthermore, it should be stated that the findings concerning the imposition of duties made for the purposes of this Regulation are provisional and may have to be reconsidered for the purpose of any definitive measures,

HAS ADOPTED THIS REGULATION:

Article 1

1.   A provisional anti-dumping duty is hereby imposed on side-by-side refrigerators, i.e. combined refrigerator-freezers of a capacity exceeding 400 litres, with at least two separate external doors fitted side-by-side, falling within CN code ex 8418 10 20 (TARIC code 8418102091) and originating in the Republic of Korea.

2.   The rate of the provisional anti-dumping duty applicable to the net, free-at-Community-frontier price, before duty, of the products described in paragraph 1 and produced by the companies below shall be as follows:

| Company | Anti-Dumping duty
  (%) | TARIC Additional Code |
| --- | --- | --- |
| Daewoo Electronics Corporation, 686 Ahyeon-dong, Mapo-gu, Seoul | 9,1 | A733 |
| LG Electronics Corporation, LG Twin Towers, 20, Yeouido-dong, Yeongdeungpo-gu, Seoul | 14,3 | A734 |
| Samsung Electronics Corporation, Samsung Main Bldg, 250, 2-ga, Taepyeong-ro, Jung-gu, Seoul | 4,4 | A735 |
| All other companies | 14,3 | A999 |

Company

Anti-Dumping duty

(%)

TARIC Additional Code

Daewoo Electronics Corporation, 686 Ahyeon-dong, Mapo-gu, Seoul

9,1

A733

LG Electronics Corporation, LG Twin Towers, 20, Yeouido-dong, Yeongdeungpo-gu, Seoul

14,3

A734

Samsung Electronics Corporation, Samsung Main Bldg, 250, 2-ga, Taepyeong-ro, Jung-gu, Seoul

4,4

A735

All other companies

14,3

A999

3.   The release for free circulation in the Community of the product referred to in paragraph 1 shall be subject to the provision of a security, equivalent to the amount of the provisional duty.

4.   Unless otherwise specified, the provisions in force concerning customs duties shall apply.

Article 2

Without prejudice to Article 20 of Regulation (EC) No 384/96, interested parties may request disclosure of the essential facts and considerations on the basis of which this Regulation was adopted, make their views known in writing and apply to be heard orally by the Commission within one month of the date of entry into force of this Regulation.

Pursuant to Article 21(4) of Regulation (EC) No 384/96, the parties concerned may comment on the application of this Regulation within one month of the date of its entry into force.

Article 3

This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Union.

Article 1 of this Regulation shall apply for a period of six months.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, 28 February 2006.

For the Commission

Peter MANDELSON

Member of the Commission

---

(1)  
  OJ L 56, 6.3.1996, p. 1. Regulation as last amended by Regulation (EC) No 2117/2005 (OJ L 340, 23.12.2005, p. 17).

1

(2)  
  OJ C 135, 2.6.2005, p. 4.

2

---

| 1.3.2006 | EN | Official Journal of the European Union | L 59/34 |
| --- | --- | --- | --- |

1.3.2006

EN

Official Journal of the European Union

L 59/34

---

COMMISSION REGULATION (EC) No 356/2006

of 28 February 2006

fixing the production refund on white sugar used in the chemical industry for the period from 1 to 31 March 2006

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Community,

Having regard to Council Regulation (EC) No 1260/2001 of 19 June 2001 on the common organisation of the markets in the sugar sector (1), and in particular the fifth indent of Article 7(5) thereof,

Whereas:

| (1) | Pursuant to Article 7(3) of Regulation (EC) No 1260/2001, production refunds may be granted on the products listed in Article 1(1)(a) and (f) of that Regulation, on syrups listed in Article 1(1)(d) thereof and on chemically pure fructose covered by CN code 1702 50 00 as an intermediate product, that are in one of the situations referred to in Article 23(2) of the Treaty and are used in the manufacture of certain products of the chemical industry. |
| --- | --- |

(1)

Pursuant to Article 7(3) of Regulation (EC) No 1260/2001, production refunds may be granted on the products listed in Article 1(1)(a) and (f) of that Regulation, on syrups listed in Article 1(1)(d) thereof and on chemically pure fructose covered by CN code 1702 50 00 as an intermediate product, that are in one of the situations referred to in Article 23(2) of the Treaty and are used in the manufacture of certain products of the chemical industry.

| (2) | Commission Regulation (EC) No 1265/2001 of 27 June 2001 laying down detailed rules for the application of Council Regulation (EC) No 1260/2001 as regards granting the production refund on certain sugar products used in the chemical industry (2) provides that these refunds shall be determined according to the refund fixed for white sugar. |
| --- | --- |

(2)

Commission Regulation (EC) No 1265/2001 of 27 June 2001 laying down detailed rules for the application of Council Regulation (EC) No 1260/2001 as regards granting the production refund on certain sugar products used in the chemical industry (2) provides that these refunds shall be determined according to the refund fixed for white sugar.

| (3) | Article 9 of Regulation (EC) No 1265/2001 provides that the production refund on white sugar is to be fixed at monthly intervals commencing on the first day of each month. |
| --- | --- |

(3)

Article 9 of Regulation (EC) No 1265/2001 provides that the production refund on white sugar is to be fixed at monthly intervals commencing on the first day of each month.

| (4) | The measures provided for in this Regulation are in accordance with the opinion of the Management Committee for Sugar, |
| --- | --- |

(4)

The measures provided for in this Regulation are in accordance with the opinion of the Management Committee for Sugar,

HAS ADOPTED THIS REGULATION:

Article 1

The production refund on white sugar referred to in Article 4 of Regulation (EC) No 1265/2001 shall be equal to 26,917 EUR/100 kg net for the period from 1 to 31 March 2006.

Article 2

This Regulation shall enter into force on 1 March 2006.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, 28 February 2006.

For the Commission

Mariann FISCHER BOEL

Member of the Commission

---

(1)  
  OJ L 178, 30.6.2001, p. 1. Regulation as last amended by Commission Regulation (EC) No 39/2004 (OJ L 6, 10.1.2004, p. 16).

1

(2)  
  OJ L 178, 30.6.2001, p. 63.

2

---

| 1.3.2006 | EN | Official Journal of the European Union | L 59/35 |
| --- | --- | --- | --- |

1.3.2006

EN

Official Journal of the European Union

L 59/35

---

COMMISSION REGULATION (EC) No 357/2006

of 28 February 2006

amending for the 64th time Council Regulation (EC) No 881/2002 imposing certain specific restrictive measures directed against certain persons and entities associated with Usama bin Laden, the Al-Qaida network and the Taliban, and repealing Council Regulation (EC) No 467/2001

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Community,

Having regard to Council Regulation (EC) No 881/2002 imposing certain specific restrictive measures directed against certain persons and entities associated with Usama bin Laden, the Al-Qaida network and the Taliban, and repealing Council Regulation (EC) No 467/2001 prohibiting the export of certain goods and services to Afghanistan, strengthening the flight ban and extending the freeze of funds and other financial resources in respect of the Taliban of Afghanistan (1), and in particular Article 7(1), first indent, thereof,

Whereas:

| (1) | Annex I to Regulation (EC) No 881/2002 lists the persons, groups and entities covered by the freezing of funds and economic resources under that Regulation. |
| --- | --- |

(1)

Annex I to Regulation (EC) No 881/2002 lists the persons, groups and entities covered by the freezing of funds and economic resources under that Regulation.

| (2) | On 22 February 2006, the Sanctions Committee of the United Nations Security Council decided to amend the list of persons, groups and entities to whom the freezing of funds and economic resources should apply. Annex I should therefore be amended accordingly, |
| --- | --- |

(2)

On 22 February 2006, the Sanctions Committee of the United Nations Security Council decided to amend the list of persons, groups and entities to whom the freezing of funds and economic resources should apply. Annex I should therefore be amended accordingly,

HAS ADOPTED THIS REGULATION:

Article 1

Annex I to Regulation (EC) No 881/2002 is hereby amended as set out in the Annex to this Regulation.

Article 2

This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Union.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, 28 February 2006.

For the Commission

Eneko LANDÁBURU

Director-General of External Relations

---

(1)  
  OJ L 139, 29.5.2002, p. 9. Regulation as last amended by Commission Regulation (EC) No 246/2006 (OJ L 40, 11.2.2006, p. 13).

1

---

ANNEX

Annex I to Regulation (EC) No 881/2002 is amended as follows:

The entry ‘Mohammed Benhammedi (alias (a) Mohamed Hannadi (b) Mohamed Ben Hammedi (c) Muhammad Muhammad Bin Hammidi (d) Ben Hammedi (e) Panhammedi (f) Abu Hajir (g) Abu Hajir Al Libi (h) Abu Al Qassam). Address: Midlands, United Kingdom. Date of birth: 22.9.1966. Place of birth: Libya. Nationality: British’ under the heading ‘Natural persons’ shall be replaced by the following:

Mohammed Benhammedi (alias (a) Mohamed Hannadi, (b) Mohamed Ben Hammedi, (c) Muhammad Muhammad Bin Hammidi, (d) Ben Hammedi, (e) Panhammedi, (f) Abu Hajir, (g) Abu Hajir Al Libi, (h) Abu Al Qassam). Address: Midlands, United Kingdom. Date of birth: 22.9.1966. Place of birth: Libya. Nationality: Libyan.

---

| 1.3.2006 | EN | Official Journal of the European Union | L 59/37 |
| --- | --- | --- | --- |

1.3.2006

EN

Official Journal of the European Union

L 59/37

---

COMMISSION REGULATION (EC) No 358/2006

of 28 February 2006

fixing the import duties in the cereals sector applicable from 1 March 2006

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Community,

Having regard to Council Regulation (EC) No 1784/2003 of 29 September 2003 on the common organisation of the market in cereals (1),

Having regard to Commission Regulation (EC) No 1249/96 of 28 June 1996 laying down detailed rules for the application of Council Regulation (EEC) No 1766/92 as regards import duties in the cereals sector (2), and in particular Article 2(1) thereof,

Whereas:

| (1) | Article 10 of Regulation (EC) No 1784/2003 provides that the rates of duty in the Common Customs Tariff are to be charged on import of the products referred to in Article 1 of that Regulation. However, in the case of the products referred to in paragraph 2 of that Article, the import duty is to be equal to the intervention price valid for such products on importation and increased by 55 %, minus the cif import price applicable to the consignment in question. However, that duty may not exceed the rate of duty in the Common Customs Tariff. |
| --- | --- |

(1)

Article 10 of Regulation (EC) No 1784/2003 provides that the rates of duty in the Common Customs Tariff are to be charged on import of the products referred to in Article 1 of that Regulation. However, in the case of the products referred to in paragraph 2 of that Article, the import duty is to be equal to the intervention price valid for such products on importation and increased by 55 %, minus the cif import price applicable to the consignment in question. However, that duty may not exceed the rate of duty in the Common Customs Tariff.

| (2) | Pursuant to Article 10(3) of Regulation (EC) No 1784/2003, the cif import prices are calculated on the basis of the representative prices for the product in question on the world market. |
| --- | --- |

(2)

Pursuant to Article 10(3) of Regulation (EC) No 1784/2003, the cif import prices are calculated on the basis of the representative prices for the product in question on the world market.

| (3) | Regulation (EC) No 1249/96 lays down detailed rules for the application of Regulation (EC) No 1784/2003 as regards import duties in the cereals sector. |
| --- | --- |

(3)

Regulation (EC) No 1249/96 lays down detailed rules for the application of Regulation (EC) No 1784/2003 as regards import duties in the cereals sector.

| (4) | The import duties are applicable until new duties are fixed and enter into force. |
| --- | --- |

(4)

The import duties are applicable until new duties are fixed and enter into force.

| (5) | In order to allow the import duty system to function normally, the representative market rates recorded during a reference period should be used for calculating the duties. |
| --- | --- |

(5)

In order to allow the import duty system to function normally, the representative market rates recorded during a reference period should be used for calculating the duties.

| (6) | Application of Regulation (EC) No 1249/96 results in import duties being fixed as set out in Annex I to this Regulation, |
| --- | --- |

(6)

Application of Regulation (EC) No 1249/96 results in import duties being fixed as set out in Annex I to this Regulation,

HAS ADOPTED THIS REGULATION:

Article 1

The import duties in the cereals sector referred to in Article 10(2) of Regulation (EC) No 1784/2003 shall be those fixed in Annex I to this Regulation on the basis of the information given in Annex II.

Article 2

This Regulation shall enter into force on 1 March 2006.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, 28 February 2006.

For the Commission

J. L. DEMARTY

Director-General for Agriculture and Rural Development

---

(1)  
  OJ L 270, 21.10.2003, p. 78. Regulation as amended by Commission Regulation (EC) No 1154/2005 (OJ L 187, 19.7.2005, p. 11).

1

(2)  
  OJ L 161, 29.6.1996, p. 125. Regulation as last amended by Regulation (EC) No 1110/2003 (OJ L 158, 27.6.2003, p. 12).

2

---

ANNEX I

Import duties for the products covered by Article 10(2) of Regulation (EC) No 1784/2003 applicable from 1 March 2006

| CN code | Description | Import duty (1)

  (EUR/tonne) |
| --- | --- | --- |
| 1001 10 00 | Durum wheat high quality | 0,00 |
| medium quality | 0,00 |
| low quality | 0,00 |
| 1001 90 91 | Common wheat seed | 0,00 |
| ex 1001 90 99 | Common high quality wheat other than for sowing | 0,00 |
| 1002 00 00 | Rye | 38,11 |
| 1005 10 90 | Maize seed other than hybrid | 52,52 |
| 1005 90 00 | Maize other than seed (2) | 52,52 |
| 1007 00 90 | Grain sorghum other than hybrids for sowing | 38,11 |

CN code

Description

Import duty (1)

(EUR/tonne)

1001 10 00

Durum wheat high quality

0,00

medium quality

0,00

low quality

0,00

1001 90 91

Common wheat seed

0,00

ex 1001 90 99

Common high quality wheat other than for sowing

0,00

1002 00 00

Rye

38,11

1005 10 90

Maize seed other than hybrid

52,52

1005 90 00

Maize other than seed (2)

52,52

1007 00 90

Grain sorghum other than hybrids for sowing

38,11

---

(1)  For goods arriving in the Community via the Atlantic Ocean or via the Suez Canal (Article 2(4) of Regulation (EC) No 1249/96), the importer may benefit from a reduction in the duty of:

| — | EUR 3/t, where the port of unloading is on the Mediterranean Sea, or |
| --- | --- |

—

EUR 3/t, where the port of unloading is on the Mediterranean Sea, or

| — | EUR 2/t, where the port of unloading is in Ireland, the United Kingdom, Denmark, Estonia, Latvia, Lithuania, Poland, Finland, Sweden or the Atlantic coasts of the Iberian peninsula. |
| --- | --- |

—

EUR 2/t, where the port of unloading is in Ireland, the United Kingdom, Denmark, Estonia, Latvia, Lithuania, Poland, Finland, Sweden or the Atlantic coasts of the Iberian peninsula.

(2)  The importer may benefit from a flat-rate reduction of EUR 24/t, where the conditions laid down in Article 2(5) of Regulation (EC) No 1249/96 are met.

---

ANNEX II

Factors for calculating duties

period from 15.2.2006-27.2.2006

1.

| Exchange quotations | Minneapolis | Chicago | Minneapolis | Minneapolis | Minneapolis | Minneapolis |
| --- | --- | --- | --- | --- | --- | --- |
| Product (% proteins at 12 % humidity) | HRS2 | YC3 | HAD2 | Medium quality (*1) | Low quality (*2) | US barley 2 |
| Quotation (EUR/t) | 141,77  (*3) | 74,42 | 180,84 | 170,84 | 150,84 | 105,62 |
| Gulf premium (EUR/t) | 42,87 | 16,79 | — | | | — |
| Great Lakes premium (EUR/t) | — | — | — | | | — |

Exchange quotations

Minneapolis

Chicago

Minneapolis

Minneapolis

Minneapolis

Minneapolis

Product (% proteins at 12 % humidity)

HRS2

YC3

HAD2

Medium quality (*1)

Low quality (*2)

US barley 2

Quotation (EUR/t)

141,77  (*3)

74,42

180,84

170,84

150,84

105,62

Gulf premium (EUR/t)

42,87

16,79

—

—

Great Lakes premium (EUR/t)

—

—

—

—

2.

Freight/cost: Gulf of Mexico–Rotterdam: 16,88 EUR/t; Great Lakes–Rotterdam: — EUR/t.

3.

| Subsidy within the meaning of the third paragraph of Article 4(2) of Regulation (EC) No 1249/96: | 0,00  EUR/t (HRW2)
  0,00  EUR/t (SRW2). |
| --- | --- |

Subsidy within the meaning of the third paragraph of Article 4(2) of Regulation (EC) No 1249/96:

0,00  EUR/t (HRW2)

0,00  EUR/t (SRW2).

---

(*1)  A discount of 10 EUR/t (Article 4(3) of Regulation (EC) No 1249/96).

*1

(*2)  A discount of 30 EUR/t (Article 4(3) of Regulation (EC) No 1249/96).

*2

(*3)  Premium of 14 EUR/t incorporated (Article 4(3) of Regulation (EC) No 1249/96).

*3

---

| 1.3.2006 | EN | Official Journal of the European Union | L 59/40 |
| --- | --- | --- | --- |

1.3.2006

EN

Official Journal of the European Union

L 59/40

---

COMMISSION REGULATION (EC) No 359/2006

of 28 February 2006

amending the representative prices and additional duties for the import of certain products in the sugar sector fixed by Regulation (EC) No 1011/2005 for the 2005/2006 marketing year

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Community,

Having regard to Council Regulation (EC) No 1260/2001 of 19 June 2001 on the common organisation of the markets in the sugar sector (1),

Having regard to Commission Regulation (EC) No 1423/95 of 23 June 1995 laying down detailed implementing rules for the import of products in the sugar sector other than molasses (2), and in particular the second sentence of the second subparagraph of Article 1(2), and Article 3(1) thereof,

Whereas:

| (1) | The representative prices and additional duties applicable to imports of white sugar, raw sugar and certain syrups for the 2005/2006 marketing year are fixed by Commission Regulation (EC) No 1011/2005 (3). These prices and duties were last amended by Commission Regulation (EC) No 344/2006 (4). |
| --- | --- |

(1)

The representative prices and additional duties applicable to imports of white sugar, raw sugar and certain syrups for the 2005/2006 marketing year are fixed by Commission Regulation (EC) No 1011/2005 (3). These prices and duties were last amended by Commission Regulation (EC) No 344/2006 (4).

| (2) | The data currently available to the Commission indicate that the said amounts should be changed in accordance with the rules and procedures laid down in Regulation (EC) No 1423/95, |
| --- | --- |

(2)

The data currently available to the Commission indicate that the said amounts should be changed in accordance with the rules and procedures laid down in Regulation (EC) No 1423/95,

HAS ADOPTED THIS REGULATION:

Article 1

The representative prices and additional duties on imports of the products referred to in Article 1 of Regulation (EC) No 1423/95, as fixed by Regulation (EC) No 1011/2005 for the 2005/2006 marketing year are hereby amended as set out in the Annex to this Regulation.

Article 2

This Regulation shall enter into force on 1 March 2006.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, 28 February 2006.

For the Commission

J. L. DEMARTY

Director-General for Agriculture and Rural Development

---

(1)  
  OJ L 178, 30.6.2001, p. 1. Regulation as last amended by Commission Regulation (EC) No 39/2004 (OJ L 6, 10.1.2004, p. 16).

1

(2)  
  OJ L 141, 24.6.1995, p. 16. Regulation as last amended by Regulation (EC) No 624/98 (OJ L 85, 20.3.1998, p. 5).

2

(3)  
  OJ L 170, 1.7.2005, p. 35.

3

(4)  
  OJ L 55, 25.2.2006, p. 18.

4

---

ANNEX

Amended representative prices and additional duties applicable to imports of white sugar, raw sugar and products covered by CN code 1702 90 99 applicable from 1 March 2006

| (EUR) |
| --- |
| CN code | Representative price per 100 kg of the product concerned | Additional duty per 100 kg of the product concerned |
| 1701 11 10  (1) | 34,77 | 0,85 |
| 1701 11 90  (1) | 34,77 | 4,47 |
| 1701 12 10  (1) | 34,77 | 0,72 |
| 1701 12 90  (1) | 34,77 | 4,18 |
| 1701 91 00  (2) | 37,34 | 6,56 |
| 1701 99 10  (2) | 37,34 | 3,14 |
| 1701 99 90  (2) | 37,34 | 3,14 |
| 1702 90 99  (3) | 0,37 | 0,30 |

(EUR)

CN code

Representative price per 100 kg of the product concerned

Additional duty per 100 kg of the product concerned

1701 11 10  (1)

34,77

0,85

1701 11 90  (1)

34,77

4,47

1701 12 10  (1)

34,77

0,72

1701 12 90  (1)

34,77

4,18

1701 91 00  (2)

37,34

6,56

1701 99 10  (2)

37,34

3,14

1701 99 90  (2)

37,34

3,14

1702 90 99  (3)

0,37

0,30

---

(1)  Fixed for the standard quality defined in Annex I.II to Council Regulation (EC) No 1260/2001 (OJ L 178, 30.6.2001, p. 1).

(2)  Fixed for the standard quality defined in Annex I.I to Regulation (EC) No 1260/2001.

(3)  Fixed per 1 % sucrose content.

---

| 1.3.2006 | EN | Official Journal of the European Union | L 59/42 |
| --- | --- | --- | --- |

1.3.2006

EN

Official Journal of the European Union

L 59/42

---

COMMISSION REGULATION (EC) No 360/2006

of 28 February 2006

determining the world market price for unginned cotton

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Community,

Having regard to Protocol 4 on cotton, annexed to the Act of Accession of Greece, as last amended by Council Regulation (EC) No 1050/2001 (1),

Having regard to Council Regulation (EC) No 1051/2001 of 22 May 2001 on production aid for cotton (2), and in particular Article 4 thereof,

Whereas:

| (1) | In accordance with Article 4 of Regulation (EC) No 1051/2001, a world market price for unginned cotton is to be determined periodically from the price for ginned cotton recorded on the world market and by reference to the historical relationship between the price recorded for ginned cotton and that calculated for unginned cotton. That historical relationship has been established in Article 2(2) of Commission Regulation (EC) No 1591/2001 of 2 August 2001 laying down detailed rules for applying the cotton aid scheme (3). Where the world market price cannot be determined in this way, it is to be based on the most recent price determined. |
| --- | --- |

(1)

In accordance with Article 4 of Regulation (EC) No 1051/2001, a world market price for unginned cotton is to be determined periodically from the price for ginned cotton recorded on the world market and by reference to the historical relationship between the price recorded for ginned cotton and that calculated for unginned cotton. That historical relationship has been established in Article 2(2) of Commission Regulation (EC) No 1591/2001 of 2 August 2001 laying down detailed rules for applying the cotton aid scheme (3). Where the world market price cannot be determined in this way, it is to be based on the most recent price determined.

| (2) | In accordance with Article 5 of Regulation (EC) No 1051/2001, the world market price for unginned cotton is to be determined in respect of a product of specific characteristics and by reference to the most favourable offers and quotations on the world market among those considered representative of the real market trend. To that end, an average is to be calculated of offers and quotations recorded on one or more European exchanges for a product delivered cif to a port in the Community and coming from the various supplier countries considered the most representative in terms of international trade. However, there is provision for adjusting the criteria for determining the world market price for ginned cotton to reflect differences justified by the quality of the product delivered and the offers and quotations concerned. Those adjustments are specified in Article 3(2) of Regulation (EC) No 1591/2001. |
| --- | --- |

(2)

In accordance with Article 5 of Regulation (EC) No 1051/2001, the world market price for unginned cotton is to be determined in respect of a product of specific characteristics and by reference to the most favourable offers and quotations on the world market among those considered representative of the real market trend. To that end, an average is to be calculated of offers and quotations recorded on one or more European exchanges for a product delivered cif to a port in the Community and coming from the various supplier countries considered the most representative in terms of international trade. However, there is provision for adjusting the criteria for determining the world market price for ginned cotton to reflect differences justified by the quality of the product delivered and the offers and quotations concerned. Those adjustments are specified in Article 3(2) of Regulation (EC) No 1591/2001.

| (3) | The application of the above criteria gives the world market price for unginned cotton determined hereinafter, |
| --- | --- |

(3)

The application of the above criteria gives the world market price for unginned cotton determined hereinafter,

HAS ADOPTED THIS REGULATION:

Article 1

The world price for unginned cotton as referred to in Article 4 of Regulation (EC) No 1051/2001 is hereby determined as equalling 24,148 EUR/100 kg.

Article 2

This Regulation shall enter into force on 1 March 2006.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, 28 February 2006.

For the Commission

J. L. DEMARTY

Director-General for Agriculture and Rural Development

---

(1)  
  OJ L 148, 1.6.2001, p. 1.

1

(2)  
  OJ L 148, 1.6.2001, p. 3.

2

(3)  
  OJ L 210, 3.8.2001, p. 10. Regulation as amended by Regulation (EC) No 1486/2002 (OJ L 223, 20.8.2002, p. 3).

3

---